The three-year decline in earnings for Travel + Leisure NYSE:TNL) isn’t encouraging, but shareholders are still up 54% over that period
Low-cost index funds make it easy to achieve average market returns. But if you invest in individual stocks, some are likely to underperform. For example, the Travel + Leisure Co. (NYSE:TNL) share price return of 37% over three years lags the market return in the same period. On the other hand, the more recent gain of 29% over a year is certainly pleasing.
Since the long term performance has been good but there’s been a recent pullback of 3.2%, let’s check if the fundamentals match the share price.
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Travel + Leisure became profitable