investing guide

Stock Analysts Earnings Estimates

stock analysts earnings estimates

Stock analysts earnings estimates are another source of fundamental analysis that investors may take into consideration. Analysts continually make estimates about the future earnings of companies.

These estimates tend to have an impact on the price of a stock even though they are just estimates, and are not always very accurate. So if you decide to trust an analyst's opinion, just remember to use caution and remember they are just estimates.

Companies are put under a lot of pressure to try to beat analyst expectations, which sometimes makes me wonder about the ethics of the corporate world and the stock market; when to much emphasis is put on future numbers. I personally think these pressures force some executives to resort to unscrupulous acts to meet or beat expectations.

When companies meet or fail to meet these estimates stocks prices usually react accordingly.