Fujian Zitian Media Technology (SZSE:300280) adds CN¥802m to market cap in the past 7 days, though investors from a year ago are still down 48%

Fujian Zitian Media Technology Co., Ltd. (SZSE:300280) shareholders will doubtless be very grateful to see the share price up 96% in the last quarter. But that is minimal compensation for the share price under-performance over the last year. In fact, the price has declined 48% in a year, falling short of the returns you could get by investing in an index fund.

The recent uptick of 26% could be a positive sign of things to come, so let's take a look at historical fundamentals.

View our latest analysis for Fujian Zitian Media Technology

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Fujian Zitian Media Technology 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. Of course, if the company can turn the situation around, investors will likely profit.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

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

A Different Perspective

While the broader market gained around 12% in the last year, Fujian Zitian Media Technology shareholders lost 48%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 8%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Fujian Zitian Media Technology better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Fujian Zitian Media Technology .

Of course Fujian Zitian Media Technology 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 Chinese 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.