Understanding earnings data is crucial to making informed investment decisions. Seeing how earnings have grown by quarter and year can help you pinpoint companies with earnings growth potential or with slower growth or declining earnings.
Comparing actual earnings to analyst estimates is also helpful. An earnings surprise can move a company’s stock price as well as the prices of other stocks in the same industry. Changes in analyst expectations can also affect a stock’s price, and paying attention to these movements can give a glimpse into the future of a company’s earnings.
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