Would Shareholders Who Purchased Envista Holdings' (NYSE:NVST) Stock Year Be Happy With The Share price Today?

While not a mind-blowing move, it is good to see that the Envista Holdings Corporation (NYSE:NVST) share price has gained 16% in the last three months. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 10% in the last year, significantly under-performing the market.

See our latest analysis for Envista Holdings

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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).

Envista Holdings fell to a loss making position during the year. While this may prove temporary, we'd consider it a negative, so it doesn't surprise us that the stock price is down. Of course, if the company can turn the situation around, investors will likely profit.

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

It might be well worthwhile taking a look at our free report on Envista Holdings' earnings, revenue and cash flow.

A Different Perspective

Given that the market gained 12% in the last year, Envista Holdings shareholders might be miffed that they lost 10%. 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. It's great to see a nice little 16% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). 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. For example, we've discovered 1 warning sign for Envista Holdings that you should be aware of before investing here.

But note: Envista Holdings 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 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.

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