Healthpeak Properties (NYSE:PEAK) shareholders lost 26% as shares fell 3.6% last week

It’s easy to match the overall market return by buying an index fund. While individual stocks can be big winners, many others fail to generate satisfactory returns. This downside risk was materialized by Healthpeak Properties, Inc. (NYSE:PEAK) shareholders over the past year, with the stock price down 29%. This is significantly lower than the market decline of around 18%. Even if shareholders bought some time ago, they would not be particularly happy: the stock has lost 27% in three years.

Going by last week, investor sentiment for Healthpeak Properties is not positive, so let’s see if there is a mismatch between the fundamentals and the stock price.

It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying performance of companies. An imperfect but reasonable way to gauge changing sentiment around a company is to compare earnings per share (EPS) with the stock price.

Healthpeak Properties has successfully turned earnings per share from a loss to a profit over the past 12 months.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at stock price performance. So it makes sense to check some other factors.

Healthpeak Properties’ dividend looks healthy to us, so we doubt yield is a concern for the market. The earnings trend doesn’t seem to explain why the stock price is down. Unless, of course, the market expects higher earnings.

The company’s revenues and profits (over time) are shown in the image below (click to see exact figures).

NYSE: Peak Earnings and Revenue Growth on September 3, 2022

We know that Healthpeak Properties has recently improved its results, but what does the future hold? We therefore recommend that you consult this free report showing consensus forecast

What about dividends?

It is important to consider the total shareholder return, as well as the stock price return, for a given stock. TSR is a calculation of return that takes into account the value of cash dividends (assuming any dividends received have been reinvested) and the calculated value of all discounted capital raisings and spinoffs. It can be said that the TSR gives a more complete picture of the return generated by a stock. It turns out that Healthpeak Properties’ TSR for the past year was -26%, which exceeds the share price return mentioned earlier. The dividends paid by the company thus inflated the total return to shareholders.

A different perspective

We regret to report that Healthpeak Properties shareholders are down 26% for the year (even including dividends). Unfortunately, this is worse than the general market decline of 18%. However, it could simply be that the stock price was impacted by greater market jitters. It might be worth keeping an eye on the fundamentals, in case there is a good opportunity. On the positive side, long-term shareholders have made money, with a gain of 1.6% per year over half a decade. If fundamentals continue to point to sustainable long-term growth, the current sell-off could be an opportunity to consider. While it’s worth considering the various impacts that market conditions can have on the stock price, there are other, even more important factors. To do this, you need to find out about the 3 warning signs we spotted with Healthpeak Properties (including 1 that does not suit us too much) .

If you’re like me, then you not want to miss this free list of growing companies insiders are buying.

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

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Carol N. Valencia