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What are Earnings Estimates?
Earnings estimates are generally consolidated estimates which are averages of the estimates given by a number of market analysts.
Companies give their own guidance on earnings estimations, and they will have their feet held to the fire, so to speak, if they are consistently off with their guidance, but most people will, rightly, give more weight to the consolidated estimates of outside experts.
Earnings estimates on a publicly traded company will come from an array of industry analysts, and are normally consolidated into a single average estimate or range. The range might or average will certainly affect the trading prices of the stock, but not as much as adjustments to estimates will.
Company-issued earnings guidance may support the industry analysts, but investors will be wise to listen to the outside analysts over the company. Companies do have a lot of pressure to be honest with their estimates, because losing the trust of investors can be a very bad thing, but there is still too much of an inherent conflict of interest to take the company’s estimation over the estimates of analysts.
Earnings are the proverbial “bottom line” for companies and their investors. Earnings per share and earnings growth will be part of the reports that come out of the estimations.
How do I get exposure to other currencies?
There are two main ways to get exposure to other currencies: you can buy them in the open market (FOREX) or in ETFs
When Can I Take Money Out of My 403(b)?
403(b)s have essentially the same distribution rules as 401ks. Taking money out before retirement is strongly discouraged
What Investment Choices Do I Have in My IRA?
IRA is a tax designation which can be placed on an account at various institutions that offer a list of investment options
What is a Traditional IRA?
A Traditional IRA holds money tax-deferred until retirement. An IRA is an account with tax-deferred growth of assets
What is the Symmetrical Triangle Top (Bearish) Pattern?
The Symmetrical Triangle Top pattern forms when a stock price fails to retest a high or low and forms two trend lines
What is Diluted Earnings Per Share?
The diluted earnings per share are earnings a co. would have if they changed all of their convertibles into common stock
What is the Capitalization Ratio?
Essentially, the capitalization ratio is a measure of how capitalized a company is to support operations and growth
What Does it Mean to have a "Duty of Best Execution"?
To have a “duty of best execution” means that a broker or entity fulfilling a trade request has to do so at the best...
Is there any merit to some other portfolio theories?
Plenty of theories are known because they are useful, and it is up to you to discern which ones may be worth your time