I am holding a few stocks that I am a little worried about them meeting their earnings estimates.
Is there a way to predict or gain insight into what earnings will be like? Does anyone have any tips or methods that might help?
2006-07-27 12:49:05 · 3 answers · asked by gravvyboat 2 in Business & Finance ➔ Investing
Well it's not exactly a science, it's more of an art. The best way to do it, and mind you it's not perfect, is take last year earnings and try to estimate the growth rate. You can find estimated growth rates on yahoo finance for each company but remember they're just estimates. Don't depend on earnings to lift your stocks up...I've been hit bad doin that in the past coz even if they crush the estimates the stock sometimes still goes down if the guidance isn't good. Try predicting how those companis will perform in the future.
Right now, cyclical stocks are down as the economy slows down and you need to move to defensive stocks like the Pfizer, the Procters...also there are some sectors that are in bull mode right now such as aerospace and defense.
Hope this helps!
2006-07-27 18:54:35 · answer #1 · answered by rajatharjani 4 · 0⤊ 0⤋
There are probably some sharks out there with a formula. My take is the 2 or 3 top operations and executive people know to some degree how the numbers are going to come back from the accountants, or sooner than most of the others, but they are bound by some strict penalties with the SEC if they disclose.
I used to get some "insider info" on a major company, made me some money, but I listened up when the CEO said "I can't tell you what to do, but we are going to have a good year!" I acted accordingly.
2006-07-27 20:03:56 · answer #2 · answered by The Advocate 4 · 0⤊ 0⤋
I think we all wish we knew the answer to that question. I would investing in stocks instead of playing on here.
2006-07-27 19:59:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋