RISE Education Cayman Ltd (NASDAQ:REDU) shareholders should be happy to see the share price up 23% in the last quarter. But in truth the last year hasn’t been good for the share price. After all, the share price is down 30% in the last year, significantly under-performing the market.

See our latest analysis for RISE Education Cayman

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.

RISE Education Cayman managed to increase earnings per share from a loss to a profit, over the last 12 months. Earnings per share growth rates aren’t particularly useful for comparing with the share price, when a company has moved from loss to profit. So it makes sense to check out some other factors.

RISE Education Cayman managed to grow revenue over the last year, which is usually a real positive. Since we can’t easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.

Depicted in the graphic below, you’ll see revenue and earnings over time. If you want more detail, you can click on the chart itself.

We know that RISE Education Cayman has improved its bottom line lately, but what does the future have in store? If you are thinking of buying or selling RISE Education Cayman stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

Given that the market gained 3.4% in the last year, RISE Education Cayman shareholders might be miffed that they lost 30%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It’s great to see a nice little 23% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it’s the start of a new trend. Is RISE Education Cayman cheap compared to other companies? These 3 valuation measures might help you decide.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.