Even after rising 4.0% this past week, GLOBALFOUNDRIES (NASDAQ:GFS) shareholders are still down 13% over the past year

While not a mind-blowing move, it is good to see that the GLOBALFOUNDRIES Inc. (NASDAQ:GFS) share price has gained 11% in the last three months. But that wasn't enough to see the company deliver market-beating returns over the year. Specifically, the stock returned 13% whereas the market is down , having returned (-13%) over the last year.

The recent uptick of 4.0% could be a positive sign of things to come, so let's take a look at historical fundamentals.

View our latest analysis for GLOBALFOUNDRIES

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

GLOBALFOUNDRIES managed to increase earnings per share from a loss to a profit, over the last 12 months.

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.

GLOBALFOUNDRIES' revenue is actually up 23% over the last year. Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted.

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

GLOBALFOUNDRIES is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. You can see what analysts are predicting for GLOBALFOUNDRIES in this interactive graph of future profit estimates.

A Different Perspective

GLOBALFOUNDRIES shareholders are down 13% over twelve months. That's reasonably close to the the market return of -12%. However, shareholders can take a little comfort that the share price is up 11% over the last three months. The selling may have been overdone, so it may be worth taking a closer look at the data to assess its growth potential. 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. Even so, be aware that GLOBALFOUNDRIES is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

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

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.