Open AccessStock Selection Based On Earnings Growth For Detecting High Returns On Stocks
Author(s) -
A. M. Agapos
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v7i2.6246
Subject(s) - growth stock , earnings yield , earnings , price–earnings ratio , earnings per share , earnings growth , stock (firearms) , economics , financial economics , business , monetary economics , stock market , econometrics , restricted stock , finance , mechanical engineering , paleontology , horse , engineering , biology
In this study, stocks with consistently increasing earnings per share were analyzed. The intrinsic value of these selected equities was determined and classified as being over or undervalued. The results of the process showed that investors purchasing those stocks classified as undervalued, whose intrinsic value was above the market price, would have consistently earned above average returns.