The past year for Jones Lang LaSalle (NYSE:JLL) investors has not been profitable

The simplest way to benefit from a rising market is to buy an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. Investors in Jones Lang LaSalle Incorporated (NYSE:JLL) have tasted that bitter downside in the last year, as the share price dropped 20%. That falls noticeably short of the market decline of around 3.8%. The silver lining (for longer term investors) is that the stock is still 17% higher than it was three years ago.

So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.

See our latest analysis for Jones Lang LaSalle

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Unhappily, Jones Lang LaSalle had to report a 28% decline in EPS over the last year. The share price fall of 20% isn't as bad as the reduction in earnings per share. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

Dive deeper into Jones Lang LaSalle's key metrics by checking this interactive graph of Jones Lang LaSalle's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 3.8% in the twelve months, Jones Lang LaSalle shareholders did even worse, losing 20%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 0.1% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. 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. Case in point: We've spotted 1 warning sign for Jones Lang LaSalle you should be aware of.

We will like Jones Lang LaSalle better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, 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.

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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.