Contrarian Approach
The earning season is in full swings. Most companies are reporting their last quarter results.
To invest during this period, it is important to have an appreciation of the market expectation of a company earning. It is not enough to have just good earnings. If a company stock price has price in a market expectation of the company earning, it has to beat this expectation to rise further to make money from a buy position. Likewise, if an investor expects the earning to fall below this expectation, he/she can make money from the expected decline in stock price with a sell position.
I will share some picks once in awhile. You can follow me to be notify when I post. Thank you for reading and hope I win some shares with my sharing. MooMoo 📈
To invest during this period, it is important to have an appreciation of the market expectation of a company earning. It is not enough to have just good earnings. If a company stock price has price in a market expectation of the company earning, it has to beat this expectation to rise further to make money from a buy position. Likewise, if an investor expects the earning to fall below this expectation, he/she can make money from the expected decline in stock price with a sell position.
I will share some picks once in awhile. You can follow me to be notify when I post. Thank you for reading and hope I win some shares with my sharing. MooMoo 📈
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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