The one-year shareholder returns and company earnings persist lower as Duckhorn Portfolio (NYSE:NAPA) stock falls a further 4.8% in past week
Investors can approximate the average market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. For example, the The Duckhorn Portfolio, Inc. (NYSE:NAPA) share price is down 35% in the last year. That contrasts poorly with the market decline of 1.0%. Duckhorn Portfolio may have better days ahead, of course; we've only looked at a one year period. Shareholders have had an even rougher run lately, with the share price down 16% in the last 90 days.
After losing 4.8% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
View our latest analysis for Duckhorn Portfolio
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.
Unhappily, Duckhorn Portfolio had to report a 1.4% decline in EPS over the last year. This reduction in EPS is not as bad as the 35% share price fall. So it seems the market was too confident about the business, a year ago.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Duckhorn Portfolio's earnings, revenue and cash flow.
A Different Perspective
While Duckhorn Portfolio shareholders are down 35% for the year, the market itself is up 1.0%. 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. With the stock down 16% 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. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Duckhorn Portfolio you should know about.
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 American 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.
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