If You Had Bought M.Yochananof and Sons (1988)'s (TLV:YHNF) Shares A Year Ago You Would Be Down 15%

The simplest way to benefit from a rising market is to buy an index fund. But if you buy individual stocks, you can do both better or worse than that. For example, the M.Yochananof and Sons (1988) Ltd (TLV:YHNF) share price is down 15% in the last year. That's well below the market return of 3.1%. Because M.Yochananof and Sons (1988) hasn't been listed for many years, the market is still learning about how the business performs. The share price has dropped 15% in three months.

Check out our latest analysis for M.Yochananof and Sons (1988)

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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).

Unfortunately M.Yochananof and Sons (1988) reported an EPS drop of 16% for the last year. We note that the 15% share price drop is very close to the EPS drop. Therefore one could posit that the market has not become more concerned about the company, despite the lower EPS. Rather, the share price has approximately tracked EPS growth.

The graphic below depicts how EPS has changed over time (unveil 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

While M.Yochananof and Sons (1988) shareholders are down 14% for the year, the market itself is up 3.1%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. Notably, the loss over the last year isn't as bad as the 15% drop in the last three months. So it seems like some holders have been dumping the stock of late - and that's not bullish. It's always interesting to track share price performance over the longer term. But to understand M.Yochananof and Sons (1988) better, we need to consider many other factors. Even so, be aware that M.Yochananof and Sons (1988) is showing 1 warning sign in our investment analysis , you should know about...

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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IL exchanges.

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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. 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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