- Oops!Something went wrong.Please try again later.
On average, over time, stock markets tend to rise higher. This makes investing attractive. But if when you choose to buy stocks, some of them will be below average performers. Unfortunately for shareholders, while the Carter's, Inc. (NYSE:CRI) share price is up 14% in the last year, that falls short of the market return. Unfortunately the longer term returns are not so good, with the stock falling 3.1% in the last three years.
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.
During the last year Carter's grew its earnings per share (EPS) by 90%. It's fair to say that the share price gain of 14% did not keep pace with the EPS growth. So it seems like the market has cooled on Carter's, despite the growth. Interesting.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Carter's has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.
A Different Perspective
Carter's shareholders are up 14% for the year (even including dividends). But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 1.3% per year over five year. This suggests the company might be improving over time. It's always interesting to track share price performance over the longer term. But to understand Carter's better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Carter's you should know about.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.