6. Earnings Forecast - The NASDAQ Dozen
While it is very important to research a stock's past earnings reports, it is also important to look at the future earnings forecasts to insure that the future profitability of the stock in question is strong.How to Score Earnings Forecast
- PassGive the earnings forecast a passing score if the consensus EPS forecast numbers increase year over year.
- FailGive the earnings forecast a failing score if the consensus EPS forecast numbers do not increase year over year.
Looking at the earnings forecast for WMT in Figure 11, WMT should receive a passing score. You can see that the consensus EPS forecast numbers are increasing year over year.
Earnings Forecast: PASS
Figure 11Consensus Earnings Forecasts
All content in this article is supplied by Wade Hansen of Learning Markets. To learn more about their investor education offerings, please visit learningmarkets.com. Find more great articles from Learning Markets in our news sections.