consensus estimates
Consensus estimates refer to the collective predictions made by analysts or experts about a company’s future financial performance, particularly its earnings. These estimates are derived from surveys of various analysts who cover a particular company and examine its financial health and market conditions. The consensus gives investors an overview of expected performance, helping them make informed decisions. When actual results are announced, they can be compared to the consensus estimates to gauge whether a company has met, exceeded, or fallen short of expectations, which can significantly influence its stock price.
Additional Insights
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Consensus estimates refer to the average predictions or expectations made by analysts or experts regarding a company's future financial performance, such as earnings or revenue. These estimates are compiled from various sources and reflect the collective viewpoint, considering different analyses and insights. Investors and market participants use these estimates to gauge how a company is expected to perform compared to its competitors and past results. When a company reports earnings that exceed or fall short of these consensus estimates, it can significantly influence its stock price and market perception.