Introducing ESI Energy Services (CNSX:OPI), The Stock That Slid 64% In The Last Year
ESI Energy Services Inc. (CNSX:OPI) shareholders should be happy to see the share price up 20% in the last month. But that's small comfort given the dismal price performance over the last year. Like an arid lake in a warming world, shareholder value has evaporated, with the share price down 64% in that time. It's not that amazing to see a bounce after a drop like that. Arguably, the fall was overdone.
See our latest analysis for ESI Energy Services
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
ESI Energy Services managed to increase earnings per share from a loss to a profit, over the last 12 months. We're surprised that the share price is lower given that improvement. If the company can sustain the earnings growth, this might be an inflection point for the business, which would make right now a really interesting time to study it more closely.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It might be well worthwhile taking a look at our free report on ESI Energy Services's earnings, revenue and cash flow.
A Different Perspective
Given that the market gained 0.7% in the last year, ESI Energy Services shareholders might be miffed that they lost 64%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. The share price decline has continued throughout the most recent three months, down 38%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. If you would like to research ESI Energy Services in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
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