Short-Term Earnings and Long-Term Profits
Over the next 45 days, thousands of companies will deliver their second-quarter earnings, along with forecasts for the rest of the year. The vast majority of investors will pay attention to only a handful of names. The overall market will react daily to the earnings news of the major companies, but unless you own an index fund, your portfolio will ultimately react to the earnings quality of the underlying company. If Europe implodes but Apple (AAPL) hits another grand slam, the earnings, not Europe, will carry the day.
To that effect, earnings from two darlings, Apple and Chipotle Mexican Grill (CMG), will be interesting this quarter, given the blazing earnings path they have created over the past several years. Some analysts have predicted "disappointing" results from Chipotle. They cite the likelihood that same-store comparisons will decline from the low teens to the mid-high single digits. Apple shares have been bouncing back and forth, and many investors are waiting for that one quarter when the inevitable "slow" growth phase will kick in....318 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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