QuinStreet (NASDAQ:QNST) shareholders are up 6.8% this past week, but still in the red over the last year

The simplest way to benefit from a rising market is to buy an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. Investors in QuinStreet, Inc. (NASDAQ:QNST) have tasted that bitter downside in the last year, as the share price dropped 38%. That's well below the market return of 13%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 1.1% in three years. But it's up 6.8% in the last week.

The recent uptick of 6.8% could be a positive sign of things to come, so let's take a look at historical fundamentals.

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There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year QuinStreet grew its earnings per share, moving from a loss to a profit.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action. So it makes sense to check out some other factors.

QuinStreet managed to grow revenue over the last year, which is usually a real positive. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We know that QuinStreet has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling QuinStreet stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Investors in QuinStreet had a tough year, with a total loss of 38%, against a market gain of about 13%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 4% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand QuinStreet better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for QuinStreet you should know about.

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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.