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Those who invested in Bogota Financial (NASDAQ:BSBK) a year ago are up 11%

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, the Bogota Financial Corp. (NASDAQ:BSBK) share price is up 11% in the last 1 year, clearly besting the market decline of around 21% (not including dividends). That's a solid performance by our standards! We'll need to follow Bogota Financial for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

So let's assess the underlying fundamentals over the last 1 year and see if they've moved in lock-step with shareholder returns.

Check out our latest analysis for Bogota Financial

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

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Bogota Financial was able to grow EPS by 5.2% in the last twelve months. The share price gain of 11% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

earnings-per-share-growth
earnings-per-share-growth

This free interactive report on Bogota Financial's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Bogota Financial shareholders should be happy with the total gain of 11% over the last twelve months. And the share price momentum remains respectable, with a gain of 3.0% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for Bogota Financial that you should be aware of.

Of course Bogota Financial may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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