C C Land Holdings (HKG:1224) hikes 29% this week, taking one-year gains to 26%

There's no doubt that investing in the stock market is a truly brilliant way to build wealth. But if you choose that path, you're going to buy some stocks that fall short of the market. Unfortunately for shareholders, while the C C Land Holdings Limited (HKG:1224) share price is up 26% in the last year, that falls short of the market return. In contrast, the longer term returns are negative, since the share price is 17% lower than it was three years ago.

Since the stock has added HK$1.4b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

Check out our latest analysis for C C Land Holdings

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year C C Land Holdings grew its earnings per share (EPS) by 86%. We note, however, that extraordinary items have impacted earnings. This EPS growth is significantly higher than the 26% increase in the share price. Therefore, it seems the market isn't as excited about C C Land Holdings as it was before. This could be an opportunity.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

Dive deeper into C C Land Holdings' key metrics by checking this interactive graph of C C Land Holdings's earnings, revenue and cash flow.

A Different Perspective

C C Land Holdings shareholders gained a total return of 26% during the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 1.7% endured over half a decade. So this might be a sign the business has turned its fortunes around. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 2 warning signs we've spotted with C C Land Holdings .

If you are like me, then you will not want to miss this free list of undervalued small caps 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 Hong Kong 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.