Those holding WiseTech Global (ASX:WTC) shares must be pleased that the share price has rebounded 33% in the last thirty days. But unfortunately, the stock is still down by 37% over a quarter. But shareholders may not all be feeling jubilant, since the share price is still down 26% in the last year.
All else being equal, a sharp share price increase should make a stock less attractive to potential investors. While the market sentiment towards a stock is very changeable, in the long run, the share price will tend to move in the same direction as earnings per share. The implication here is that deep value investors might steer clear when expectations of a company are too high. One way to gauge market expectations of