Business / Taxes / Earnings Momentum: When a company's earnings per share grow from year to year at an ever-increasing rate, that pattern is described as earnings momentum. One example might be a company whose earnings grow one year at 10%, the next year at 18%, and a third year at 25%. In many cases, this momentum triggers an increase in the stock's share price as well, as investors identify the stock as one they expect to continue to grow and increase in value.
Earnings Noun Synonyms: wages, salary, income, compensation, pay, stipend, emolument, proceeds, return, revenue, yield, takings, take
Momentum Adjective Synonyms: energy, force, drive, strength, impetus, power, inertia, impulse, thrust, push
Business / Finance / Normalized Earnings: Earnings that have been adjusted in order to take into account the effect of cycles in the economy. MORE
Business / Taxes / Momentum Investing: A momentum investor focuses on stocks that are rising in value on increasing daily volume, and avoids stocks that are falling in price or that are perceived to be undervalued. The logic is that when a MORE