A season of opportunity
Earnings season is the time when publicly traded companies are required to report their quarterly earnings, including net income, sales numbers, earnings per share, and more. Analysts regard these figures as powerful indicators of each company’s overall economic health. Earnings per share (or EPS) is considered especially noteworthy, representing a company’s earnings in relation to its market cap.
Companies will also usually provide additional relevant data. For example, Netflix often reports new subscriber numbers and the budget it has allocated for new content creation, while Apple shares figures such as the number of iPhones sold over the past quarter.
How earnings reports affect stock trading
A company’s market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts’ speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity, since better-than-expected figures could cause a company’s stock to greatly increase in value. Worse-than-expected results could have the opposite effect. To see upcoming earnings reports, go to the Earnings Reports Calendar.
How to receive dividends
Companies often reward their shareholders with dividends, which are payments made to investors in relation to the number of shares they hold. On eToro, long (BUY) position holders are awarded dividends when the companies distribute them among their investors. To read more about eToro’s dividend policy, click here.
Learn what top analysts are saying
If you feel that you need a little more information before investing in a stock, check out the Research Tab on eToro (only available to depositing customers). The Research Tab, available on each stock’s page, contains valuable information, including the general market sentiment towards a certain stock. Powered by TipRanks, the Research tab shows the views of top investors and financial firms regarding a certain stock, and also articles related to analysts’ views.
All-time high could be the time to buy
One possible investment strategy is to buy stocks after they reach an all-time high. While past performance cannot guarantee future success, analysts do tend to agree that when a stock rises consistently over the long term, the company is doing well. Even after the stock reaches an all-time high, it can still be considered a good investment.
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