Yahoo Finance The one-year earnings decline is not helping Envista Holdings' (NYSE:NVST share price, as stock falls another 3.6% in past week
Investors can earn very close to the average market return by buying an index fund. In contrast individual stocks will provide a wide range of possible returns, and may fall short. For example, that's what happened with Envista Holdings Corporation (NYSE:NVST) over the last year - it's share price is down 22% versus a market decline of 21%. The silver lining (for longer term investors) is that the stock is still 8.6% higher than it was three years ago. More recently, the share price has dropped a further 11% in a month.
If the past week is anything to go by, investor sentiment for Envista Holdings isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
Check out our latest analysis for Envista Holdings
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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).
Unfortunately Envista Holdings reported an EPS drop of 34% for the last year. The share price fall of 22% isn't as bad as the reduction in earnings per share. It may have been that the weak EPS was not as bad as some had feared.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
This free interactive report on Envista Holdings' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
A Different Perspective
Envista Holdings shareholders are down 22% over twelve months, which isn't far from the market return of -21%. Over the last three years, shareholders booked a gain of 2.8% per year - better than the last year, that's for sure!. It could be worth doing some further research, because it may be that the long term future remains bright (and the lower share price an opportunity). 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. For example, we've discovered 2 warning signs for Envista Holdings that you should be aware of before investing here.
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 US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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