let's BEAT it..

It might be of some concern to shareholders to see the BioTelemetry, Inc. (NASDAQ:BEAT) share price down 15% in the last month. But that doesn't undermine the fantastic longer term performance (measured over five years). Indeed, the share price is up a whopping 538% in that time. So it might be that some shareholders are taking profits after good performance. But the real question is whether the business fundamentals can improve over the long term.

Anyone who held for that rewarding ride would probably be keen to talk about it.

See our latest analysis for BioTelemetry

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share ( EPS ) with the share price.

During the last half decade, BioTelemetry became profitable. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains. Since the company was unprofitable five years ago, but not three years ago, it's worth taking a look at the returns in the last three years, too. We can see that the BioTelemetry share price is up 446% in the last three years. During the same period, EPS grew by 68% each year. That makes the EPS growth rather close to the annualized share price gain of 76% over the same period. So you could reasonably conclude that investor sentiment towards the stock has remained pretty steady, over time. Rather, the share price has approximately tracked EPS growth.

get free idea