Yahoo Finance Investors Who Bought CONSOL Energy (NYSE:CEIX) Shares A Year Ago Are Now Down 62%
Even the best stock pickers will make plenty of bad investments. And there's no doubt that CONSOL Energy Inc. (NYSE:CEIX) stock has had a really bad year. The share price is down a hefty 62% in that time. CONSOL Energy may have better days ahead, of course; we've only looked at a one year period. The falls have accelerated recently, with the share price down 32% in the last three months.
Check out our latest analysis for CONSOL Energy
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).
During the unfortunate twelve months during which the CONSOL Energy share price fell, it actually saw its earnings per share (EPS) improve by 21%. It could be that the share price was previously over-hyped. It's fair to say that the share price does not seem to be reflecting the EPS growth. So it's easy to justify a look at some other metrics.
Revenue was pretty flat on last year, which isn't too bad. But the share price might be lower because the market expected a meaningful improvement, and got none.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We know that CONSOL Energy has improved its bottom line lately, but what does the future have in store? This free report showing analyst forecasts should help you form a view on CONSOL Energy
A Different Perspective
Given that the market gained 3.8% in the last year, CONSOL Energy shareholders might be miffed that they lost 62%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 32%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. If you would like to research CONSOL Energy in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Thank you for reading.
