2 Minutes Learn to Read and Trade Earning Reports
Hi Tigers,
It's that time of the year once again...Q1 2022 Earning Season!
In order to quickly through the financial statements of the company, some indicators are important. These key indicators identify companies with good business & visible future growth outlooks by profitability, liquidity, valuation and leverage.
Two Minutes to Read Finacial Reports
The graph below teaches you to get key financial results in two minutes!
Small hint here:
When you read the financial report of a traditional company, you should focus on the profitability and liquidity of the company. If you read the financial report of a growing company that is not yet profitable, the key point should be sales growth and leverage.
How to Trade Earning?
Earnings season can be a great time for a trader to get insight on their equity investments, as well as benefit from short-term volatility. Meanwhile, investor returns can be heavily influenced by how a company’s earnings report is received by the market.
In order to maximize this trading opportunity, there are some key considerations to make before diving in.
1. Select and Forcast
First you need collects information, focus on the company you care then make your forecast.
An investor can purchase call options before the earnings announcement if the expectation is that there will be a positive price move after the earnings report.
Alternatively, an investor can purchase put options before the earnings announcement if the expectation is that there will be a negative price move after the earnings report.
2. Compare to Analysts’ Expectations
Make Sure reports releases premarkets of aftermarket, see how the results compare with analysts’ expectations, then decide to do day trading or swing trading.
3. Fundamental and Competitor Comparison
If you are longterm investor, make sure the finacial results are negative or positive, whether will change the fundamentals of the company. also to compare to other stocks in this sector.
Earnings Calendar This Week
$Morgan Stanley(MS)$,$Goldman Sachs(GS)$,$Citigroup(C)$,$Wells Fargo(WFC)$,$Taiwan Semiconductor Manufacturing(TSM)$,$UnitedHealth(UNH)$,$PNC Financial Services Group Inc(PNC)$
Congratulations, you have found an Easter Egg. You can earn 50 Tiger coins by leaving a comment below this post“Easter Egg Hunt”.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Thanks @Tiger_Academy for a quick lesson on how to learn and trade Earnings Report. Next week will be a busy week as a flurry of companies are due to report. It is a great time to put to practice what I have learnt today. 😍😍😍