Some stocks are best avoided. We really hate to see fellow investors lose their hard-earned money. Imagine if you held Tianjin Futong Information Science&Technology Co.,Ltd. (SZSE:000836) for half a decade as the share price tanked 72%. And it's not just long term holders hurting, because the stock is down 50% in the last year. Shareholders have had an even rougher run lately, with the share price down 35% in the last 90 days.

If the past week is anything to go by, investor sentiment for Tianjin Futong Information Science&TechnologyLtd isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

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.

In the last half decade Tianjin Futong Information Science&TechnologyLtd saw its share price fall as its EPS declined below zero. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. But we would generally expect a lower price, given the situation.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Dive deeper into Tianjin Futong Information Science&TechnologyLtd's key metrics by checking this interactive graph of Tianjin Futong Information Science&TechnologyLtd's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 17% in the twelve months, Tianjin Futong Information Science&TechnologyLtd shareholders did even worse, losing 50%. 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 11% over the last half decade. 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. Take risks, for example - Tianjin Futong Information Science&TechnologyLtd has 2 warning signs we think you should be aware of.

But note: Tianjin Futong Information Science&TechnologyLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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