(8) Stock Analysts Estimates
It is one of the most important key factors to determine stock movements after quarterly results. Earnings season is considered to be highly speculative in nature. In this period, several stock analysts provide their result estimates about a given stock.
Some analysts can be on bullish side while other may be on bearish side. Their views can vary depending on personal or even business factors. You are advised not to follow them blindly.
However, you can follow only the best stock analysts with proven performance estimates. You should even make positions only after thorough analysis of their report. It will help you to earn optimum profits during earnings seasons.
(9) Current Valuation Of Equities
It is one of the most relevant & hidden secrets to determine stock moves after results. Equities are considered to be traded 6 months ahead of fundamentals.
But, some equities may trade at lower valuations in relation to expected growth in profits. If you are successful in finding stocks available at cheaper valuation then you can go for it.
These stocks on posting better than expected results can sky rocket higher after quarterly results. It is mainly due to bargain hunting initiated by opportunistic investors or traders.
Similarly, stocks trading at higher valuations can show free fall on posting poor numbers. It is better to stay away from stocks with higher valuations.
- Stock Moves After Results: Shutterstock