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Winning Health Technology Group (SZSE:300253) Sheds CN¥555m, Company Earnings and Investor Returns Have Been Trending Downwards for Past Year

Simply Wall St ·  Sep 26, 2022 20:20

Even the best stock pickers will make plenty of bad investments. Anyone who held Winning Health Technology Group Co., Ltd. (SZSE:300253) over the last year knows what a loser feels like. The share price is down a hefty 57% in that time. Even if you look out three years, the returns are still disappointing, with the share price down49% in that time. Shareholders have had an even rougher run lately, with the share price down 30% in the last 90 days.

With the stock having lost 4.0% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

View our latest analysis for Winning Health Technology Group

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.

Unfortunately Winning Health Technology Group reported an EPS drop of 37% for the last year. The share price decline of 57% is actually more than the EPS drop. So it seems the market was too confident about the business, a year ago.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

earnings-per-share-growthSZSE:300253 Earnings Per Share Growth September 26th 2022

This free interactive report on Winning Health Technology Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

We regret to report that Winning Health Technology Group shareholders are down 57% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 17%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 1.3%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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 2 warning signs for Winning Health Technology Group that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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