Caesars Entertainment Corporation () shareholders should be happy to see the share price up 16% in the last month. But over the last half decade, the stock has not performed well. After all, the share price is down 50% in that time, significantly under-performing the market.
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.
During five years of share price growth, Caesars Entertainment moved from a loss to profitability. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics