Corporate earnings are also referred to as “company earnings” and “corporate profits:” basically, the amount of money a company makes in certain period of time. The price/earnings multiple is still the most common tool used to value a company. The stock market values a company based on the amount of money—the earnings and profits—the company has after all expenses, including taxes, have been paid. In a stock market where stocks are traded at an average of 12 times earnings, a company making $1.00 a share per year would be valued at $12.00. All things being equal, the more money a public company makes, the higher its stock price.
This morning, the news is full of talk about Greece. This weekend, the government there introduced capital controls in what’s looking more and more like a country on the brink of financial collapse.Greece leaving the eurozone is of importance as it opens the door for other struggling countries like Portugal, Spain, and Italy to eventually. Read More
A SpaceX stock initial public offering (IPO) could be even more likely after CEO Elon Musk asked for government’s permission to put thousands of Internet satellites into orbit earlier this week.SpaceX’s plan is to deploy a network of 4,000 small and cheap geosynchronous satellites to beam signals down to Earth. These SpaceX satellites. Read More
With each passing day, there is more evidence that suggests the stock market is a dangerous place to be; the upside seems very limited and the downside risks are increasing.At the end of the day, for key stock indices to go higher, revenues and corporate earnings of the companies that make up those stock indices must improve. Right now,. Read More
As corporate earnings tumble in, equity market action has been more tuned to stronger oil prices. A number of companies have now reported, and the numbers aren’t that bad. It’s still in the early stages, of course, but so far, there have been a lot of good financials. Having said that, sales growth has been missing early this corporate. Read More
With the first quarter of 2015 behind us, it’s corporate earnings reporting season. Unfortunately, we are expecting the biggest decline in public corporate earnings since 2009.Corporate Earnings Expected to DeclineCorporate profits are the most basic reasons why key stock indices rise or fall. If earnings are rising, stocks. Read More