Hongli Group's ROE and Earnings Growth: A Mixed Bag for the Stock Market

Hongli Group's (NASDAQ:HLP) stock has increased by 150% in the last three months. However, the company's ROE is 1.8%, which is unremarkable compared to the industry average of 11%. Despite a 5-year net income decline of 50%, the company's poor ROE and industry growth of 2.3% raise concerns about its future share price momentum.