Investing in Corcept Therapeutics (NASDAQ: CORT) five years ago would have given you a gain of 225%

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The maximum you can lose on any stock (assuming you’re not using leverage) is 100% of your money. But when you choose a business that is truly successful, you can Make more than 100%. A good example is Corcept Therapeutics Incorporated (NASDAQ: CORT) which has seen its stock price rise 225% in five years. Last week, the stock price rose 2.5%.

With that in mind, it’s worth seeing if the underlying fundamentals of the business have been driving long-term performance, or if there are any gaps.

It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying performance of companies. By comparing earnings per share (EPS) and changes in the share price over time, we can get a sense of how investor attitudes towards a company have changed over time.

In five years, Corcept Therapeutics has managed to increase its earnings per share by 134% per year. EPS growth is more impressive than the 27% annual share price gain over the same period. So it looks like the market isn’t so keen on the stock these days.

You can see how EPS has changed over time in the image below (click on the graph to see the exact values).

NasdaqCM: CORT Growth in earnings per share October 10, 2021

We love that insiders have bought stocks in the past twelve months. Even so, future profits will be much more important to whether current shareholders make money. Dive Deeper into the Gains by Viewing this Interactive Chart from Corcept Therapeutics’ profit, revenue and cash flow.

A different perspective

Corcept Therapeutics shareholders achieved a total return of 11% during the year. But it was below the market average. If we look back five years, the returns are even better, reaching 27% per year for five years. It may well be that this is a business worth watching, given the consistently positive reception over time in the market. While it is worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we discovered 1 warning sign for Corcept Therapeutics which you should know before investing here.

Corcept Therapeutics is not the only one to buy. So take a look at this free list of growing companies with insider buying.

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

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

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