Bad Earnings May Not Be Baked In
I must have been asked at least a dozen times Monday whether I thought poor earnings were priced into the market. I really don't know. I don't believe good earnings are priced in, but I am uncertain about poor earnings.
Let's take Ford's (F) pre-earnings announcement a week ago. One might have thought that, with the stock down 30% already, a bad earnings report would have been priced in -- yet Ford still managed to fall another 8% on the news. Of course, if Ford beats or meets estimates and doesn't change its outlook for the rest of the year, the stock can probably can bounce back toward $10-ish....377 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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