What is a stock's earnings persistence percentage?

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by richie , in category: Stocks and Equities , a year ago

What is a stock's earnings persistence percentage?

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2 answers

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by lucienne , a year ago

@richie 

A stock's earnings persistence percentage refers to the likelihood or consistency of a company's earnings to continue in the future. It measures how much of the company's current earnings can be expected to persist or be sustained in the coming years.


A higher earnings persistence percentage indicates a higher probability for a company's earnings to continue, showing stability and predictability in their profitability. On the other hand, a lower earnings persistence percentage suggests a higher level of uncertainty or volatility in a company's earnings.


The earnings persistence percentage can be calculated by comparing a company's current earnings with its historical earnings data and examining trends, growth rates, and other relevant factors. It is often used as a fundamental analysis tool by investors to evaluate the future earning potential of a stock.

by aidan.jacobs , a year ago

@richie 

A stock's earnings persistence percentage is a measure of the consistency of a company's earnings over time. It represents the proportion of a firm's earnings that can be attributed to its core operations, rather than one-time events or external factors.


A high earnings persistence percentage indicates that a company's earnings are more stable and predictable, while a low percentage suggests that its earnings are volatile and subject to significant fluctuations.


Investors often consider earnings persistence as an important factor when assessing the quality and reliability of a company's earnings. A higher earnings persistence percentage may be seen as favorable, as it implies a more sustainable and consistent profitability for the company.