LifeVantage Corporation (NASDAQ:LFVN) shareholders have seen the share price descend 21% over the month. On the other hand, over the last twelve months the stock has delivered rather impressive returns. Like an eagle, the share price soared 196% in that time. So we think most shareholders won’t be too upset about the recent fall. The real question is whether the business is trending in the right direction.
Check out our latest analysis for LifeVantage
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).
LifeVantage was able to grow EPS by 396% in the last twelve months. It’s fair to say that the share price gain of 196% did not keep pace with the EPS growth. So it seems like the market has cooled on LifeVantage, despite the growth. Interesting.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
A Different Perspective
It’s good to see that LifeVantage has rewarded shareholders with a total shareholder return of 196% in the last twelve months. That’s better than the annualised return of 2.1% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before spending more time on LifeVantage it might be wise to click here to see if insiders have been buying or selling shares.
Of course LifeVantage may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
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 editorial-team@simplywallst.com. 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.