Clal Insurance Enterprises Holdings (TLV:CLIS) ascends 8.1% this week, taking five-year gains to 20%

When you buy and hold a stock for the long term, you definitely want it to provide a positive return. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the Clal Insurance Enterprises Holdings Ltd. (TLV:CLIS) share price is up 20% in the last five years, that's less than the market return. Zooming in, the stock is up just 4.8% in the last year.

The past week has proven to be lucrative for Clal Insurance Enterprises Holdings investors, so let's see if fundamentals drove the company's five-year performance.

Check out our latest analysis for Clal Insurance Enterprises Holdings

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).

During the last half decade, Clal Insurance Enterprises Holdings became profitable. That would generally be considered a positive, so we'd hope to see the share price to rise.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

Clal Insurance Enterprises Holdings shareholders gained a total return of 4.8% during the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it's actually better than the average return of 4% over half a decade It is possible that returns will improve along with the business fundamentals. Before deciding if you like the current share price, check how Clal Insurance Enterprises Holdings scores on these 3 valuation metrics.

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 Israeli 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.