Yahoo Finance Helen of Troy (NASDAQ:HELE) shareholders have endured a 56% loss from investing in the stock a year ago
Taking the occasional loss comes part and parcel with investing on the stock market. And there's no doubt that Helen of Troy Limited (NASDAQ:HELE) stock has had a really bad year. To wit the share price is down 56% in that time. We note that it has not been easy for shareholders over three years, either; the share price is down 36% in that time. The falls have accelerated recently, with the share price down 24% in the last three months. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.
Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.
See our latest analysis for Helen of Troy
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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).
Unfortunately Helen of Troy reported an EPS drop of 19% for the last year. The share price decline of 56% is actually more than the EPS drop. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
Dive deeper into Helen of Troy's key metrics by checking this interactive graph of Helen of Troy's earnings, revenue and cash flow.
A Different Perspective
We regret to report that Helen of Troy shareholders are down 56% for the year. Unfortunately, that's worse than the broader market decline of 23%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 0.9%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Helen of Troy is showing 1 warning sign in our investment analysis , you should know about...
We will like Helen of Troy better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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.
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