Market doesn’t like Healthpeak Properties (NYSE:PEAK) earnings drop as stock falls 6.0% this week
Many investors define a successful investment as beating the market average over the long term. But it is virtually certain that you will sometimes buy stocks that are below average market returns. Unfortunately, this has been the case for longer Healthpeak Properties, Inc. (NYSE:PEAK) shareholders, as the stock price has fallen 27% over the past three years, well below the market return of around 35%. The most recent news is not reassuring, the share price having fallen by 26% in one year.
After losing 6.0% last week, it’s worth looking at company fundamentals to see what we can infer from past performance.
However, if you prefer to see where opportunities and risks are within PEAK’s industryyou can read our analysis on the US REIT sector.
It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying performance of companies. One way to look at how market sentiment has changed over time is to look at the interaction between a company’s stock price and its earnings per share (EPS).
Healthpeak Properties has become profitable over the past five years. We would generally expect the stock price to rise accordingly. So, given that the stock price is falling, it’s also worth checking out other metrics.
We note that the dividend has declined – a likely contributor to the share price drop. It doesn’t seem like the revenue changes would have had a big impact on the stock price, but a closer look at the data might reveal something.
You can see how earnings and income have changed over time in the image below (click on the graph to see exact values).
We know that Healthpeak Properties has recently improved its results, but what does the future hold? This free a report showing analyst forecasts should help you get an idea of the Healthpeak properties
What about dividends?
In addition to measuring share price performance, investors should also consider total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital increases, as well as any dividends, assuming the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often much higher than the stock price return. It turns out that Healthpeak Properties’ TSR for the last 3 years was -17%, which exceeds the share price return mentioned earlier. And there’s no price guessing that dividend payouts largely explain the divergence!
A different perspective
While the broader market lost around 17% in the twelve months, Healthpeak Properties shareholders fared even worse, losing 23% (even including dividends). 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 made money, gaining 3% per year over half a decade. It could be that the recent selloff is an opportunity, so it may be worth checking the fundamentals for signs of a long-term growth trend. It is always interesting to follow the evolution of the share price over the long term. But to better understand Healthpeak Properties, we need to consider many other factors. To do this, you need to find out about the 3 warning signs we spotted some with Healthpeak Properties (including 1 that is potentially serious).
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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