It's easy to match the overall market returns by purchasing index funds. But buying individual stocks can do better or worse than that.investors in Tegna Co., Ltd. (NYSE:TGNA) tasted the bitter downside last year, with its share price down 33%. This compares to a market return of 25%. Long-term shareholders haven't been hit too hard, as the share price has fallen a relatively painless 24% over three years.
Next, let's look at the company's fundamentals to see if long-term shareholder returns are in line with the performance of the underlying business.
Check out our latest analysis for TEGNA.
Markets are powerful pricing mechanisms, but stock prices reflect not only underlying business performance but also investor sentiment. One imperfect but simple way to consider how the market perception of a company has changed is to compare the change in the earnings per share (EPS) with the share price movement.
During the unfortunate twelve months when TEGNA's share price was down, its earnings per share (EPS) actually improved by 18%. The stock may have been overvalued previously.
It's surprising that the share price has fallen so much even though EPS has improved. However, you may find another metric that better explains stock price movements.
Revenues are about the same as last year, which isn't too bad. However, it's certainly possible that the market expected earnings growth and the share price decline reflects that disappointment.
The company's earnings and revenue (long-term) are depicted in the image below (click to see the exact numbers).
We know that TEGNA has improved its earnings lately, but what does the future hold for it? Find out what analysts are predicting for TEGNA in this article. interaction Graph of future profit forecast.
different perspective
Investors in TEGNA have had a tough year, losing a total of 31% (including dividends), versus a market return of around 25%. Even blue-chip stocks can see their share prices drop from time to time, and we like to see improvement in a company's fundamental metrics before we get too interested. On the bright side, long term shareholders have made money, with a return of 5% per year for over 50 years. The recent selloff could be an opportunity, so it might be worth checking the fundamental data for signs of a long-term growth trend. 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, consider the ever-present fear of investment risk. We've identified 3 warning signs for you TEGNA (there is at least one, but it's a bit off-putting) and understanding them should be part of your investment process.
If you're like me, you will. do not have I want to miss this free A 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 American 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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
