Reflecting on WCT Holdings Berhad's (KLSE:WCT) Share Price Returns Over The Last Five Years

Some stocks are best avoided. We don't wish catastrophic capital loss on anyone. Spare a thought for those who held WCT Holdings Berhad (KLSE:WCT) for five whole years - as the share price tanked 72%. We also note that the stock has performed poorly over the last year, with the share price down 35%. Unhappily, the share price slid 1.1% in the last week.

View our latest analysis for WCT Holdings Berhad

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

In the last half decade WCT Holdings Berhad saw its share price fall as its EPS declined below zero. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. However, we can say we'd expect to see a falling share price in this scenario.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

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

A Different Perspective

While the broader market gained around 8.7% in the last year, WCT Holdings Berhad shareholders lost 35%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 11% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand WCT Holdings Berhad better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with WCT Holdings Berhad .

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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 MY 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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