ANALYSIS: Separating the trend from the noise over results season involves both art and science. Good analysis can help you avoid jumping to conclusions too early.
Evaluate whether a surprise in a company’s sales is likely to be indicative of a change in trend or just noise.
At a certain level, a lot of equity analysis is about predicting whether a squiggly line on a graph will move up or down in the future. For example, a key judgement is typically how fast a company’s revenues will grow in the future.
Qualitative judgement will clearly play a big role in making this
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