Strong week for OraSure Technologies (NASDAQ:OSUR) shareholders doesn't alleviate pain of three-year loss

It's nice to see the OraSure Technologies, Inc. (NASDAQ:OSUR) share price up 11% in a week. But that doesn't change the fact that the returns over the last three years have been disappointing. In that time, the share price dropped 56%. So it is really good to see an improvement. Perhaps the company has turned over a new leaf.

While the last three years has been tough for OraSure Technologies shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

See our latest analysis for OraSure Technologies

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

During five years of share price growth, OraSure Technologies moved from a loss to profitability. We would usually expect to see the share price rise as a result. So it's worth looking at other metrics to try to understand the share price move.

We note that, in three years, revenue has actually grown at a 25% annual rate, so that doesn't seem to be a reason to sell shares. This analysis is just perfunctory, but it might be worth researching OraSure Technologies more closely, as sometimes stocks fall unfairly. This could present an opportunity.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

It is of course excellent to see how OraSure Technologies has grown profits over the years, but the future is more important for shareholders. This free interactive report on OraSure Technologies' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

OraSure Technologies provided a TSR of 1.6% over the last twelve months. But that return falls short of the market. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 8% endured over half a decade. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand OraSure Technologies better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for OraSure Technologies (of which 1 is significant!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com