What is a stock's earnings persistence percentage?

by cedrick.casper , in category: Stocks and Equities , a year ago

What is a stock's earnings persistence percentage?

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1 answer


by richie , 10 months ago


A stock's earnings persistence percentage refers to the consistency and stability of its earnings over time. It is a measure that depicts how likely a company's earnings are to persist or continue in the future. The percentage indicates the proportion of a company's earnings that can be predicted or expected to repeat in subsequent periods.

Higher earnings persistence percentage suggests greater stability and reliability of a company's earnings, indicating that the company is likely to generate consistent and predictable profits over time. On the other hand, a lower percentage suggests less certainty in the persistence of earnings, signaling a higher degree of variability or uncertainty in a company's profitability.