Investors in First Seacoast Bancorp (NASDAQ:FSEA) have made a return of 11% over the past year

The simplest way to invest in stocks is to buy exchange traded funds. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the First Seacoast Bancorp (NASDAQ:FSEA) share price is 11% higher than it was a year ago, much better than the market decline of around 22% (not including dividends) in the same period. So that should have shareholders smiling. We'll need to follow First Seacoast Bancorp for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

So let's assess the underlying fundamentals over the last 1 year and see if they've moved in lock-step with shareholder returns.

View our latest analysis for First Seacoast Bancorp

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 the last year First Seacoast Bancorp grew its earnings per share (EPS) by 23%. This EPS growth is significantly higher than the 11% increase in the share price. So it seems like the market has cooled on First Seacoast Bancorp, despite the growth. Interesting.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free interactive report on First Seacoast Bancorp's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

First Seacoast Bancorp boasts a total shareholder return of 11% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 2.8% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 1 warning sign for First Seacoast Bancorp that you should be aware of.

Of course First Seacoast Bancorp may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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