It's easy to match the overall market return by buying an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. For example, the ShenZhen Click Technology Co.,LTD. (SZSE:002782) share price is down 37% in the last year. That's disappointing when you consider the market declined 18%. At least the damage isn't so bad if you look at the last three years, since the stock is down 8.7% in that time. Shareholders have had an even rougher run lately, with the share price down 10% in the last 90 days. But this could be related to the weak market, which is down 6.1% in the same period.

If the past week is anything to go by, investor sentiment for ShenZhen Click TechnologyLTD isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

View our latest analysis for ShenZhen Click TechnologyLTD

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

The last year saw ShenZhen Click TechnologyLTD's EPS really take off. We don't think the growth guide to the sustainable growth rate in this case, but we do think this sort of increase is impressive. So we are surprised the share price is down. So it's worth taking a look at some other metrics.

Given the yield is quite low, at 0.6%, we doubt the dividend can shed much light on the share price. ShenZhen Click TechnologyLTD managed to grow revenue over the last year, which is usually a real positive. 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.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We know that ShenZhen Click TechnologyLTD has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think ShenZhen Click TechnologyLTD will earn in the future (free profit forecasts).

A Different Perspective

While the broader market lost about 18% in the twelve months, ShenZhen Click TechnologyLTD shareholders did even worse, losing 37% (even including dividends). Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 0.3% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand ShenZhen Click TechnologyLTD better, we need to consider many other factors. Take risks, for example - ShenZhen Click TechnologyLTD has 2 warning signs we think you should be aware of.

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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Chinese 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.