Zhongchao Inc. (NASDAQ:ZCMD) shareholders should be happy to see the share price up 24% in the last quarter. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 44% in the last year, significantly under-performing the market.

See our latest analysis for Zhongchao

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.

Unhappily, Zhongchao had to report a 15% decline in EPS over the last year. The share price decline of 44% is actually more than the EPS drop. This suggests the EPS fall has made some shareholders are more nervous about the business.

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

Dive deeper into Zhongchao's key metrics by checking this interactive graph of Zhongchao's earnings, revenue and cash flow.

A Different Perspective

While Zhongchao shareholders are down 44% for the year, the market itself is up 35%. 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 24% 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). It's always interesting to track share price performance over the longer term. But to understand Zhongchao better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Zhongchao (of which 1 is a bit unpleasant!) 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.

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