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Taking the occasional loss comes part and parcel with investing on the stock market. Anyone who held Concrete Pumping Holdings, Inc. (NASDAQ:BBCP) over the last year knows what a loser feels like. To wit the share price is down 51% in that time. We wouldn’t rush to judgement on Concrete Pumping Holdings because we don’t have a long term history to look at. The falls have accelerated recently, with the share price down 46% in the last three months.
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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).
Concrete Pumping Holdings 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. We hope for shareholders’ sake that the company becomes profitable again soon.
The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It’s probably worth noting we’ve seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
A Different Perspective
Given that the market gained 2.7% in the last year, Concrete Pumping Holdings shareholders might be miffed that they lost 51%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 46%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we’d remain pretty wary until we see some strong business performance. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Concrete Pumping Holdings by clicking this link.
Concrete Pumping Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.