Q4 Earnings Review: Disappointed earnings but satisfied results?
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Every quarter there are about 2/3 of companies beating analy...
Every quarter there are about 2/3 of companies beating analyst estimates. Why? Because analysts adjust their estimates before companies report. Actually so-called “beating or missing” game is simply a way for wall street to manipulate short term stock price fluctuations. For investors it is better to simply focus on year on year company revenue and earnings growth. Therefore one should look for companies in sectors exhibiting higher revenue growth than that of the S&P 500, as well as strong earnings growth, with reasonable and sustainable valuations. Energy and Industrials sectors stand out on those measures.
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