If you want to compound wealth in the stock market, you can do so by buying an index fund. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Jiangsu Cnano Technology Co., Ltd. (SHSE:688116) share price is up 86% in the last 1 year, clearly besting the market decline of around 15% (not including dividends). So that should have shareholders smiling. Jiangsu Cnano Technology hasn't been listed for long, so it's still not clear if it is a long term winner.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

Check out our latest analysis for Jiangsu Cnano Technology

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the last year Jiangsu Cnano Technology grew its earnings per share (EPS) by 138%. It's fair to say that the share price gain of 86% did not keep pace with the EPS growth. So it seems like the market has cooled on Jiangsu Cnano Technology, despite the growth. Interesting. Having said that, the market is still optimistic, given the P/E ratio of 85.31.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We know that Jiangsu Cnano Technology has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Jiangsu Cnano Technology stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Jiangsu Cnano Technology shareholders should be happy with the total gain of 86% over the last twelve months, including dividends. Unfortunately the share price is down 6.2% over the last quarter. Shorter term share price moves often don't signify much about the business itself. It's always interesting to track share price performance over the longer term. But to understand Jiangsu Cnano Technology better, we need to consider many other factors. Even so, be aware that Jiangsu Cnano Technology is showing 1 warning sign in our investment analysis , you should know about...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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

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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.