This week we are having some of the market’s biggest companies presenting their quarterly earnings reports. These billion dollar empires hold up most of the market’s value and investors have high expectations. Here are a few tips to remind you of what to look out for in your company’s report.
We all want rapid growth, but the companies that stand the longest have mastered discipline and consistency in every aspect of their corporation. Listen and look for consistent growth in production, financials, or even a decrease in liabilities.
Don’t let one bad quarter determine the value of a great company.
Along with consistency, investors tend to look for stable growth. Whether you are looking for an increase in gross profit or an increase in production, listen and look for consistent growth from quarter-to-quarter. Yet, depending on the company’s competitive advantage, the company may have slower growth in this quarter from their recent quarters. Don’t let one bad quarter determine the value of a great company.Wheather you should continue to hold, sell, or buy more shares depends entirely on the individual investor.
Perhaps the company you love seems perfect! Too good to be true? Look in their filings to see if they have any unpaid taxes or read if the corporation has any pending lawsuits. Always pay attention to the minor details on the earnings reports (or calls). It’s typical for CEOs to say the wrong thing at the right time and drive down stock prices within minutes.
Earnings reports can be a pivotal moment for your investing journey. Contrast and compare from similar corporations. And if need be, refine your investing strategy. Buy low, sell high, and take your profits.
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