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

Sales Forecasts

Although sometimes it may seem so, analysts just don’t pull their earnings forecasts out of thin air. Rather, they set up detailed earnings models, starting with estimated sales, and then deduct their estimated costs to arrive at their earnings forecast.

Earnings forecasts have been available for years, but the sales (revenue) forecasts used to derive the forecasted earnings have been hard to come by. That changed in 2001 when Yahoo added consensus revenue estimates to its Analyst Estimate report. The availability of sales forecasts is an important breakthrough that, so far, has gone unnoticed by many investors.

Consensus sales forecasts are most important when analyzing growth companies. Growth investors often don’t realize ...

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