Market expectations (good and bad) can have an effect on a stock’s performance when these expectations are not met. While predicting the future is impossible, there are ways that investors can try and gauge potential outcomes based on numbers at their disposal.
One of the hardest lessons to learn in the market is that it’s about expectations rather than reality. Even a great set of results can actually see a stock trading lower if those results were below expectations. Inversely, a poor set of results could see a stock trading higher if they weren’t as bad as the market was expecting.
The important part of this equation is knowing what the market as a whole is expecting. Some online brokers offer access to analyst consensus forecasts and this certainly guides us as to what is expected from results. Often the easiest way to gauge things is to simply watch a share’s price movement in the minutes and hours after an announcement regarding the company is made – whether it be a trading update, merger, board changes etc.
But there is a better way to manage this process. And in light of a number of recent sell-offs of stocks that did not meet market expectations, I thought it important to cover the price/ earnings-to-growth (PEG) ratio again.
この記事は Finweek English の 21 February 2019 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Finweek English の 21 February 2019 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
