In such cases, growth rates are misleading while judging the true health of a company. If a company’s Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. After all, a 20% earnings rise (though apparently looks good) doesn’t tell you if earnings growth has been exhibiting a decelerating trend.Īlso, seasonal fluctuations come into play sometimes. Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. Why Is a Positive Earnings Surprise So Important? Our screener yields winning stocks like TakeTwo Interactive Software ( TTWO Quick Quote TTWO - Free Report), Delek US Holdings ( DK Quick Quote DK - Free Report), Ulta Beauty ( ULTA Quick Quote ULTA - Free Report), Altair Engineering ( ALTR Quick Quote ALTR - Free Report) and Albemarle ( ALB Quick Quote ALB - Free Report). This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature. It is not surprising that in an earnings season, every investor looks for stocks that can beat market expectation.
0 kommentar(er)
