How to beat Wall Street analysts at their own earnings game | Humble Student of the Markets

How to beat Wall st analysts

In the past few months, I have received a lot of feedback and criticism over my use of forward 12-month EPS estimates, such as the chart below that appeared in last weekend`s post (Brexit panic).

I would like to clarify why this form of analysis matters and this is a valuable technique to beat Wall Street analysts at their own Earnings Game.   Here is we know about Street estimates.

Earnings estimates do matter to markets. Expectations matter. Just remember all the speculation, jockeying and positioning before and after the earnings reports of traders’ favorite stocks such as FANG and tell me otherwise.

Analysts are wrong. Street EPS estimates are notoriously inaccurate and overly optimistic. EPS estimates for any single fiscal year or quarter tend start high and they decline over time.

Read more: How to beat Wall Street analysts at their own earnings game | Humble Student of the Markets

Mike Rawson

Mike is the owner of 7 Circles, and a private investor living in London. He has been managing his own money for 35 years, with some success.

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How to beat Wall Street analysts at their own earnings game | Humble S…

by Mike Rawson time to read: 1 min
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