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Estimate Revision Investing

Upward trend of in EPS revisions might be indication of future stock movement

Investing using the estimate revision method involves analyzing a company’s earnings estimates and any revisions made to those estimates by analysts. This method assumes that if analysts are revising their earnings estimates upward, it is a positive sign for the company and its stock price.

To implement this method, an investor would typically look for companies that have experienced positive earnings revisions over the past few quarters. The idea is that positive earnings revisions suggest that the company is performing well and that its stock price is likely to increase.

Investors can use various tools and resources to track earnings estimates and revisions, such as financial news outlets, analyst reports, and online financial platforms.

It’s important to note that earnings estimates and revisions can be volatile and subject to change, and investors should not rely solely on this method when making investment decisions. It’s always recommended to conduct thorough research and analysis and consider a range of factors, including company fundamentals, industry trends, and economic conditions, before making any investment decisions.