Earnings Momentum

Earnings determine a stock's value, right? Yes, but here is a surprising twist...

We are in the middle of earnings season. According to MoneyLIFE's model, earnings momentum is one of the three key elements of equity valuation. The commonest way to link earnings to price is to use P/E, which is derived by dividing a company's price per share by its earnings per share. If a company has a P/E of...

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