Getting Started: The Income Statement
Another consideration is expectations. Analysts
and company management make predictions about a company's income in advance to help give investors an idea about the future. These predictions aren't always that accurate (and should be taken with a grain of salt) but how close they are to actual results can have a big effect on a company's stock price. If a company reports a quarterly profit greater than expectations (or even a net loss below expectations), stocks can see some big upward movement.
, the income statement is an essential thing to look at in your fundamental analysis
of a company. How much money that company's bringing in is a big deal -- and stock prices reflect that. So a company's income statement can have a positive effect on your income as well.
To learn more about fundamental analysis, check out these lessons on TheStreet.com University:
- Getting Started: Fundamental Analysis
- Getting Started: The Balance Sheet
- The Finance Professor: Beginner's Guide to Earnings Calls
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,246.97 | 1,093.01 | 2,151.08 | 34.82 |
Oil *
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SPDR Gold
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