It was not a good quarter for Integer Holdings Corporation (NYSE: ITGR) shareholders, as the share price fell by 13% during that time. But on the plus side, the stock has risen over five years. Unfortunately, its 39% return is below the market return of 74%. Not all shareholders will hold it for the long term, so think of those who have hit a 31% drop in the last twelve months.
After last week's strong rise, it is worth looking at whether long-term returns have been driven by improving fundamentals.
While some continue to preach the efficient markets hypothesis, it has been proven that markets are over-reactive dynamic systems and investors are not always rational.
Integer Holdings has seen its total earnings per share (EPS) increase by 17% per year over five years of share price growth. This growth per share is higher than the average annual share price growth of 7%. Thus, we can conclude that the broader market has become more cautious about the stock.
While the broader market lost about 14% in twelve months, Integer Holdings shareholders lost even more, losing 31%.
However, it may well be that the share price has been affected by wider market fluctuations. It might be worth keeping an eye on the fundamentals if there is a good opportunity. Long-term investors would not be so upset as they would gain 7% every year for five years.
If fundamentals continue to point to long-term solid growth, the current sell-off could be an opportunity worth considering. While it is worth considering the various impacts that market conditions can have on the share price, there are other factors that are even more important.