Rules of the Game: To Rake in the Sales
When you hear the phrase "fundamental indicators," what generally comes to mind is earnings, or some variation thereof. Bottom-line growth, price-to-earnings ratios, dividends -- and all the attendant ways of analyzing dividend payouts -- are the metrics typically under the microscope.
But, while I certainly scrutinize earnings-related data, I often prefer to put my focus on revenue. As we all know, companies can use perfectly legal and ethical accounting methods to massage their earnings, and firms also report various charges and items that can cut into profit -- even in a quarter with robust sales growth. So when a stock catches your eye, it's always prudent to analyze the revenue situation before you make a purchase....490 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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