Stocks & Commodities V. 32:7 (61-62): Wall Streetís Biased Estimates by Gideon Vigderhous, PhD

Stocks & Commodities V. 32:7 (61-62): Wall Streetís Biased Estimates by Gideon Vigderhous, PhD
Item# V32C07_818VIGD
$2.95
Availability: In Stock

Product Description

Wall Streetís Biased Estimates by Gideon Vigderhous, PhD

Earnings Talk

Does Wall Street show a systematic bias when estimating earnings per share (EPS) when compared to actual EPS? Is underestimating the norm? Using forecast models based on time series analysis will give you a weighted average of the EPS so you know how to hedge your portfolio during earnings season.

A critical time for every stock traded on the stock exchanges is when corporate earnings are announced. Stock prices are sensitive to earnings results when evaluated in light of Wall Streetís expectations, also known as the consensus estimate. Stock prices can gain or lose as much as 5Ė20% of their value in one day when faced with either missed Wall Street estimates or beaten Wall Street estimates.

HOW ACCURATE ARE THE ESTIMATES?

Analysis of 1,333 companies that reported earnings in 2011 indicates that 92.5% of them received a positive EPS estimate by Wall Street analysts, and 65% of those companies indicated they were able to beat the Wall Street estimate. Those could be described as surprise earnings. Meanwhile, 7.9% of the companies met Wall Streetís estimate, and the balance (27%) fell below Wall Streetís estimate with an average loss of 11 cents below the estimate.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order