Are Earnings A Useful Tool for Picking Great Stocks? When? How?

A Stockflare Podcast

At Stockflare, we believe everyone can do a good job of picking stocks. All you need is the right set of tools.

Every time a company reports results, the headlines always talk about earnings, earnings per share. But how useful a tool are they? How should you look at them? What are the dangers? Alternatives?

In this Stockflare Podcast, Shane & Gautam talk about how they look at earnings and how it helps them do their research.

The 7 keys to using earnings

We cover the following

  1. What metrics should you look at, when you are analyzing a stock for the first time?
  2. Why earnings are one of the best metrics to start with?
  3. How earnings and the price-to-earnings ratio (PE ratio) interact?
  4. What are the pitfalls with earnings? What are the alternative metrics to look at?
  5. Why you need to look at the trend in earnings, i.e. the growth, not just the absolute figure?
  6. What are red flags to watch out for when looking at earnings?
  7. Are there any exceptions when looking at stocks from different sectors?

By the end of the podcast, we hope you’ll understand how we use earnings as a tool for analyzing stocks. And more importantly, we hope you’ll have the tools to start using earnings to judge stocks yourself!


Next?

We are planning our next Podcast, so please let us know what you think of this one and what you’d like us to cover in the next edition!

One obvious follow-up is:

How do I analyze a stock that doesn’t have any earnings?

Though we’d prefer to deliver content you care about. Not content we want to yap-yap about. :)


Podcasters:

Shane Leonard, CFA, is the CEO and co-founder of Stockflare, a financial data company. Previously he worked as a stockbroker at Citigroup and Credit Suisse. The views expressed are his own. His Medium profile is at: Shane Leonard, CFA.

Gautam Lamba is an erstwhile business and economics grad, student of law, and lover of the stock market. Born in Canada, living in London, he’s got a transatlantic perspective on investing. Like Shane, the views expressed are his own. His Medium profile is at: Gautam Lamba.