TELUS International (Cda) Inc. (NYSE:TIXT) shareholders should be happy to see the share price up 18% in the last month. But in truth the last year hasn't been good for the share price. In fact the stock is down 20% in the last year, well below the market return.

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 TELUS International (Cda)

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

Even though the TELUS International (Cda) share price is down over the year, its EPS actually improved. It's quite possible that growth expectations may have been unreasonable in the past.

The divergence between the EPS and the share price is quite notable, during the year. But we might find some different metrics explain the share price movements better.

TELUS International (Cda) 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 image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

TELUS International (Cda) is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling TELUS International (Cda) stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

We doubt TELUS International (Cda) shareholders are happy with the loss of 20% over twelve months. That falls short of the market, which lost 12%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 2.2% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. 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. For example, we've discovered 1 warning sign for TELUS International (Cda) that you should be aware of before investing here.

Of course TELUS International (Cda) 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.

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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.