Learn how to succeed in Stock Markets understanding what are earnings estimates

Do you want to know more about stocks trading and where to find earnings estimates? Watch our latest video to learn what are earnings estimates and how they influence the stock market trading.

What are earnings estimates – A simple explanation

One of the biggest barometers of a company’s strength is the earnings estimate. This is the number that analysts come up with that represents how strong or weak a company is performing. Because of this, it can greatly influence the stock price, as it shows the expectations as to how this particular company will perform over the timeframe being mentioned. Generally, estimates are given in the quarterly timeframe, and most the time this is where you will refer to.

With that being said, there are several places where you can get an idea of what analysts expect. One of the easiest places to go is finance.yahoo.com, Yahoo’s financial site. You can enter the symbol or name of the stock, and find quite a bit of information in one tight area. By clicking on the “Analysts” tab, you can see went the estimates are in general.

You can also see a lot of other information such as charting, and option chains, but at the end of the day earnings estimates give you a bit of a measure as to what the announcement of earning should be. Simply put, if they are missed, that tends to shock the market quite a bit. In the meantime, if a company is expected to continue growing, that tends to drive demand for that stock. The growth of course is shown in the earnings estimate, as analysts pore through financial numbers and the like to find out what the proper evaluation of this particular company could be.