While shareholders of TruBridge (NASDAQ:TBRG) are in the black over 1 year, those who bought a week ago aren't so fortunate

TruBridge, Inc. (NASDAQ:TBRG) shareholders have seen the share price descend 15% over the month. But that doesn't detract from the splendid returns of the last year. Like an eagle, the share price soared 163% in that time. So it is important to view the recent reduction in price through that lense. The real question is whether the business is trending in the right direction.

Since the long term performance has been good but there's been a recent pullback of 12%, let's check if the fundamentals match the share price.

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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).

TruBridge was able to grow EPS by 59% in the last twelve months. Though we do note extraordinary items affected the bottom line. This EPS growth is significantly lower than the 163% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that TruBridge has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts .

A Different Perspective

It's good to see that TruBridge has rewarded shareholders with a total shareholder return of 163% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 2% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 2 warning signs for TruBridge (1 is a bit unpleasant!) that you should be aware of before investing here.

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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 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.