Скачать или смотреть Focus on THIS Instead of the Stock Price

Focusing on a company’s earnings rather than just its stock price is important because earnings drive long-term value, while stock prices can be noisy and short-term.

Here’s why earnings matter more:

✅ 1. Earnings Reflect True Business Performance

Earnings show how much profit the company is actually making.

A rising stock price means little if the company isn’t generating real income.

✅ 2. Stock Price Can Be Misleading

Prices fluctuate daily due to market sentiment, news, or speculation.

A stock can be overpriced or underpriced in the short term.

✅ 3. Earnings Drive Stock Prices Over Time

Long-term, stocks tend to follow the direction of earnings growth.

Companies with strong, consistent earnings usually see their stock prices rise.

✅ 4. Helps You Assess Value

Earnings allow you to calculate valuation metrics like the P/E ratio (Price-to-Earnings).

This helps you decide if a stock is expensive or a bargain.

✅ 5. Dividend Potential

Profitable companies are more likely to pay or grow dividends.

No earnings = no sustainable dividends.

Bottom Line:
Stock prices are just the “scoreboard.” Earnings are the “game.”

If you want to invest wisely, watch the fundamentals—not just the price tag.

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