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Some GP Strategies (NYSE:GPX) Shareholders Are Down 40%

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GP Strategies Corporation (NYSE:GPX) shareholders should be happy to see the share price up 17% in the last quarter. But if you look at the last five years the returns have not been good. You would have done a lot better buying an index fund, since the stock has dropped 40% in that half decade.

See our latest analysis for GP Strategies

There is no denying that markets are sometimes efficient, but prices do not always reflect 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).

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During the five years over which the share price declined, GP Strategies's earnings per share (EPS) dropped by 18% each year. The share price decline of 9.8% per year isn't as bad as the EPS decline. So investors might expect EPS to bounce back -- or they may have previously foreseen the EPS decline.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

NYSE:GPX Past and Future Earnings, June 20th 2019
NYSE:GPX Past and Future Earnings, June 20th 2019

This free interactive report on GP Strategies's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

GP Strategies shareholders are down 26% for the year, but the market itself is up 5.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 9.8% over the last half decade. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. Before spending more time on GP Strategies it might be wise to click here to see if insiders have been buying or selling shares.

But note: GP Strategies may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.