It is a pleasure to report that the Digital Core REIT (SGX:DCRU) is up 31% in the last quarter. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact, the price has declined 41% in a year, falling short of the returns you could get by investing in an index fund.
The recent uptick of 7.9% could be a positive sign of things to come, so let's take a look at historical fundamentals.
Check out our latest analysis for Digital Core REIT
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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.
A Different Perspective
Given that the market gained 4.7% in the last year, Digital Core REIT shareholders might be miffed that they lost 39%. 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 31% 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Digital Core REIT has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.
We will like Digital Core REIT better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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