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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit.But as Peter Lynch said in One Up On Wall Street, ‘Long shots almost never pay off.'” data-reactid=”18″>For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit.But as Peter Lynch said in One Up On Wall Street , ‘Long shots almost never pay off.’ In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like New York Times ( NYSE:NYT ).While profit is not necessarily a social good, it’s easy to admire a business that can consistently produce it.While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.View our latest analysis for New York Times How Quickly Is New York Times Increasing Earnings Per Share? The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually.Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS.

Who among us would not applaud New York Times’s stratospheric annual EPS growth of 42%, compound, over the last three years? Growth that fast may well be fleeting, but like a lotus blooming from a murky pond, it sparks joy for the wary stock pickers.

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth.I note that New York Times’s revenue from operations was lower than its revenue in the last twelve months, so that could distort my analysis of its margins.On the one hand, New York Times’s EBIT margins fell over the last year, but on the other hand, revenue grew.So if EBIT margins can stabilize, this top-line growth should pay off for shareholders.You can take a look at the company’s revenue and earnings growth trend, in the chart below.Click on the chart to see the exact numbers.You don’t drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for New York Times’s future profits .Are New York Times Insiders Aligned With All Shareholders? We would not expect to see insiders owning a large percentage of a US$5.4b company like New York Times.

But we do take comfort from the fact that they are investors in the company.Notably, they have an enormous stake in the company, worth US$147m.I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock.Does New York Times Deserve A Spot On Your Watchlist? New York Times’s earnings have taken off like any random crypto-currency did, back in 2017.

That EPS growth certainly has my attention, and the large insider ownership only serves to further stoke my interest.At times fast EPS growth is a sign the business has reached an inflection point; and I do like those.So to my mind New York Times is worth putting on your watchlist; after all, shareholders do well when the market underestimates fast growing companies.Now, you could try to make up your mind on New York Times by focusing on just these factors, or you could also consider how its price-to-earnings ratio compares to other companies in its industry .

Although New York Times certainly looks good to me, I would like it more if insiders were buying up shares.If you like to see insider buying, too, then this free list of growing companies that insiders are buying , could be exactly what you’re looking for.Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction If you spot an error that warrants correction, please contact the editor at .This article by Simply Wall St is general in nature.

It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation.Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data.Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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