One simple way to benefit from a rising market is to buy an index fund. By comparison, an individual stock is unlikely to match market returns - and could well fall short. For example, that's what happened with Jiangsu Cnano Technology Co., Ltd. (SHSE:688116) over the last year - it's share price is down 11% versus a market decline of 10%. We wouldn't rush to judgement on Jiangsu Cnano Technology because we don't have a long term history to look at. Unfortunately the last month hasn't been any better, with the share price down 11%.

Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.

See our latest analysis for Jiangsu Cnano Technology

There is no denying that markets are sometimes efficient, but prices do not always reflect 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.

Even though the Jiangsu Cnano Technology share price is down over the year, its EPS actually improved. It could be that the share price was previously over-hyped.

It's surprising to see the share price fall so much, despite the improved EPS. So it's well worth checking out some other metrics, too.

With a low yield of 0.05% we doubt that the dividend influences the share price much. Jiangsu Cnano Technology 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.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

It is of course excellent to see how Jiangsu Cnano Technology has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling Jiangsu Cnano Technology stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Having lost 11% over the year, including dividends, Jiangsu Cnano Technology has generated a return within the same ballpark as the broader market. On the bright side, the stock has regained 8.3% in the last ninety days. The selling may have been overdone, so it may be worth taking a closer look at the data to assess its growth potential. It's always interesting to track share price performance over the longer term. But to understand Jiangsu Cnano Technology better, we need to consider many other factors. For instance, we've identified 1 warning sign for Jiangsu Cnano Technology that you should be aware of.

We will like Jiangsu Cnano Technology 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 CN 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.