O'Reilly logo

Fire Your Stock Analyst!: Analyzing Stocks on Your Own by Harry Domash

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 4. Analysis Tool #1: Analyzing Analysts’ Data

Disregarding day-to-day fluctuations, stock prices typically reflect the market’s expectations for the underlying company’s future earnings growth. Other things being equal, shareholders make money when expectations rise, and lose when they decline.

Stock market analysts came under fire in recent years, first for advising us to buy ridiculously overpriced tech stocks at the market peak in 2000, then in 2001 for urging us to buy Enron shortly before the energy-trader collapsed, and again in 2002 when government investigations revealed that some analysts were advising investors to buy stocks that they themselves believed were losers.

Despite their low repute, analysts’ buy/sell ratings and ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required