Yahoo Finance SelectQuote (NYSE:SLQT) shareholders are up 23% this past week, but still in the red over the last year
It is a pleasure to report that the SelectQuote, Inc. (NYSE:SLQT) is up 55% in the last quarter. But that is meagre solace when you consider how the price has plummeted over the last year. Specifically, the stock price nose-dived 90% in that time. So the rise may not be much consolation. The real question is whether the company can turn around its fortunes. While a drop like that is definitely a body blow, money isn't as important as health and happiness.
The recent uptick of 23% could be a positive sign of things to come, so let's take a look at historical fundamentals.
See our latest analysis for SelectQuote
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).
SelectQuote fell to a loss making position during the year. While this may prove temporary, we'd consider it a negative, so it doesn't surprise us that the stock price is down. However, there may be an opportunity for investors if the company can recover.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.
A Different Perspective
SelectQuote shareholders are down 90% for the year, even worse than the market loss of 16%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. Putting aside the last twelve months, it's good to see the share price has rebounded by 55%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand SelectQuote better, we need to consider many other factors. For instance, we've identified 3 warning signs for SelectQuote (1 doesn't sit too well with us) that you should be aware of.
Of course SelectQuote may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
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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