• Revenue Cycle Management
  • COVID-19
  • Reimbursement
  • Diabetes Awareness Month
  • Risk Management
  • Patient Retention
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • Practice Efficiency
  • Finance and Wealth
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Practice Growth
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

Why stocks don't soar on earnings estimates

Article

A few months ago I bought a stock that seemed very promising; several analysts had posted high earnings estimates for it. But the stock's price hasn't risen much since then. Why is that?

A few months ago I bought a stock that seemed very promising; several analysts had posted high earnings estimates for it. But the stock's price hasn't risen much since then. Why is that?

Earnings forecasts that analysts agree upon are typically reflected in the price of a stock almost instantaneously, so your purchase price probably included any increase attributable to the estimates you saw. An unusually positive forecast by one analyst, on the other hand, can indicate an opportunity for an additional price increase if the forecast eventually proves to be true. But before investing on that basis, make sure you find out what the analyst's assumptions were and do some additional research to evaluate whether they're valid.

Related Videos