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nvesting in the stock market can be simplified by buying an index fund, but selecting above-average stocks can significantly boost returns. The Axis Real Estate Investment Trust (KLSE:AXREIT) is a notable example, with its share price rising 12% over the last year, outperforming the market decline of around 5.9%. However, its three-year return of 6.9% is less impressive.

    Let's examine the underlying fundamentals to see if they align with shareholder returns. The healthcare sector is poised for disruption by AI technology, and several stocks under $10 billion in market capitalization are working on innovations such as early diagnostics and drug discovery. Markets reflect investor sentiment, not just business performance, so it's essential to consider other metrics beyond earnings per share (EPS).

    Axis Real Estate Investment Trust's EPS dropped 12% over the last year, but its share price rose 12%. This disconnect suggests that investors are not solely focused on EPS. The recent dividend payment is higher than the previous year's, which may have contributed to the share price increase. Additionally, revenue growth of 13% likely encouraged buyers.

    The company has a strong track record and plenty of analyst coverage, providing visibility into future growth. To get a more comprehensive view, investors should consider the total shareholder return (TSR), which includes dividend payments and any discounted capital raising or spin-off. Axis Real Estate Investment Trust's TSR for the last year was 18%, largely due to its dividend payments.