Posted by on Jul 16, 2018 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Alex Nabaum


By Jason Zweig |  July 13, 2018 11:00 am ET


What matters to a stock price is not how much profit the company earns, but how much it earns relative to what the market was expecting. In what’s called a positive earnings surprise, a company reports a profit greater than analysts are forecasting. In a negative earnings surprise, the company announces a profit below analysts’ expectations. (Money-losing companies can also surprise, by doing more or less badly than expected.)….


To read the rest of the column: 

The Wall Street Journal




For further reading:


Jason Zweig, Your Money and Your Brain

Jason Zweig, The Devil’s Financial Dictionary

Benjamin Graham, The Intelligent Investor

Jason Zweig, The Little Book of Safe Money




Why You Shouldn’t Buy Those Quarterly Earnings Surprises

The Right Way to Handle a Surprise

Profits Came in Lower Than Expected? Hip, Hip, Hooray!

David Veenman and Patrick Verwijmeren, “Do Investors Fully Unravel Persistent Pessimism in Analysts’ Earnings Forecasts?