TELUS International (Cda) (NYSE:TIXT) investors are sitting on a loss of 69% if they invested a year ago

The nature of investing is that you win some, and you lose some. Unfortunately, shareholders of TELUS International (Cda) Inc. (NYSE:TIXT) have suffered share price declines over the last year. In that relatively short period, the share price has plunged 69%. We wouldn't rush to judgement on TELUS International (Cda) because we don't have a long term history to look at. Shareholders have had an even rougher run lately, with the share price down 46% in the last 90 days. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.

So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.

Check out our latest analysis for TELUS International (Cda)

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Unfortunately TELUS International (Cda) reported an EPS drop of 34% for the last year. This reduction in EPS is not as bad as the 69% share price fall. So it seems the market was too confident about the business, a year ago.

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

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

Given that the market gained 8.2% in the last year, TELUS International (Cda) shareholders might be miffed that they lost 69%. 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 46% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. 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. Case in point: We've spotted 5 warning signs for TELUS International (Cda) you should be aware of.

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 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.