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This question does not apply to companies already reported Q3, Q2, or Q1 results between 01 October to 27 October 2006

2006-10-27 22:47:29 · 4 answers · asked by samson_wong 1 in Business & Finance Investing

4 answers

Those that have done it before. Folks at Zacks Investment Research refer to this as "the cockroach effect". Earnings surprises are like cockroaches -- where you see one now, you'll see more soon...

2006-10-28 03:45:31 · answer #1 · answered by NC 7 · 0 0

I believe that industrial companies are going report right around the estimates (some have reported substantially lower like CAT or AA). The financials also won't wow anyone this quarter as their growth is slowing and the relatively flat yield curve is making it hard for banks to make hefty profits. That being said, I think retailers will beat estimates this quarter. The flat yield curve, while it hurts banks, helps consumers. Also, while a lot of segments of the economy are slowing (GDP slowed to 1.6 percent last quarter), the segment that is still robust is consumer spending. Just yesterday, Volcom (VLCM) blew the estimates out of the water. I think the safest bet is to bet on the American consumer.

2006-10-28 03:39:01 · answer #2 · answered by jthomas1279 2 · 0 0

usually it extremely is using fact the solid income weren't almost as good as estimated. investors - the enormous companies, people who flow the standard public of shares - hire especially mathematical quantitative fashions to estimate what the "authentic" cost of a inventory ought to get carry of all tips available. usually those estimates come across a consensus, particularly on the greater useful-accompanied shares (blue chips, etc). So the consensus could be that YYZ is estimated to have income in keeping with share (EPS) of $one million.seventy 4, and the cost of the inventory would be bid up or bought down on the inspiration of that consensus. If the income checklist is presented in at $one million.60, it extremely is nice information despite the fact that it extremely is wanting what became estimated, and so companies that carry the inventory will sell correspondingly using fact it extremely is not extremely the overall performance they have been hoping for. it is likewise a count of the common of the income. particular, KMJ had extensive earnings this quarter yet did so from advertising off a super form of components, meaning that it is not at risk of be as rewarding in coming quarters. it is likewise conceivable that income met forecast yet different information overshadows it - for occasion if BP had introduced stellar income 2 weeks after the Deep Horizon explosion, and on a similar time introduced that they estimated to take a super loss here quarter, the destiny loss might probable outweigh the present income. Or it extremely is that a inventory cuts its dividend (meaning much less money flow from possessing it, for this reason driving down the cost if the dividend became seen lifelike). So it extremely is not merely the income, however the completed photograph of the corporation that's taken under consideration.

2016-11-26 00:32:28 · answer #3 · answered by guiteres 4 · 0 0

Most US companies are right now. They being conservative so they will not disappoint. You should consider what sectors are you interested in and if you would like to invest in large or small stock sectors? Do you want to stay with stocks or mutual funds? Listen to A Lot of business news that report on US stocks...You find the key in listening to them talk.

2006-10-28 00:30:01 · answer #4 · answered by E. Marie G 2 · 0 0

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