It's understandable if you feel frustrated when a stock you own sees a lower share price. But sometimes broader market conditions have more of an impact on prices than the actual business performance. The The Duckhorn Portfolio, Inc. (NYSE:NAPA) share price is down 10% in the last year. However, that's better than the market's overall decline of 16%. Duckhorn Portfolio hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time.
Since Duckhorn Portfolio has shed US$118m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.
See our latest analysis for Duckhorn Portfolio
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During the unfortunate twelve months during which the Duckhorn Portfolio share price fell, it actually saw its earnings per share (EPS) improve by 22%. Of course, the situation might betray previous over-optimism about growth.
It's fair to say that the share price does not seem to be reflecting the EPS growth. So it's well worth checking out some other metrics, too.
Duckhorn Portfolio's revenue is actually up 15% over the last year. 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.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We know that Duckhorn Portfolio has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Duckhorn Portfolio stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
While they no doubt would have preferred make a profit, at least Duckhorn Portfolio shareholders didn't do too badly in the last year. Their loss of 10%, actually beat the broader market, which lost around 16%. At least the recent returns have been positive, with the stock up 2.0% in around 90 days. The recent uptick could be an early suggestion that the prior falls were too extreme; but we'll need to see how the business progresses. Before spending more time on Duckhorn Portfolio it might be wise to click here to see if insiders have been buying or selling shares.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.