As the next earnings season comes into focus, investors will be watching to see which companies surpass expectations. Many investors consider earnings performance to be one of the most important factors when deciding which stocks to choose. When quarterly earnings numbers are released, the investing community closely watches to see if a company beats or misses projections. Tracking some earnings projections, we note that the current quarter EPS consensus estimate for Diamond Offshore Drilling, Inc. (NYSE:DO) is -0.39. This EPS estimate is using data provided by 5 sell-side analysts polled by Zacks Research. For the last quarter, the company reported a quarterly EPS of -0.26. Because earnings surprises may cause the stock price to rise or fall drastically in the short term, investors may choose to make the buy/sell decisions after the smoke has cleared.
Investors may be trying to figure out what stocks will give a boost to portfolio performance over the next few months. Value investors may be looking for current value in the market. They are generally looking for bargains and interested in uncovering those stocks that may be primed for a run but have fallen out of favor with Wall Street. Growth investors may be looking to target companies that are able to advance earnings faster than average. This may include searching for those industries that have strong growth trends and a proven track record of strong sales and earnings growth.
In the fast paced world of stock market investing, individuals are always looking for information to help provide an edge. Many investors will study sell-side analyst opinions to help assist with navigating the market. Turning the attention to shares of Diamond Offshore Drilling, Inc. (NYSE:DO), we can see that the current average broker rating is now 3.72. This rating is provided by Zacks Research using a scale from 1 to 5. Following this scale, a 1 would indicate a Strong Buy and a 5 would represent a Strong Sell rating. Digging a little deeper, we can see that out of the polled analysts, 2 rated the stock a Strong Buy or Buy. This average broker rating may help investors decide if they feel the same way about the stock as the professionals.
Investors might be trying to gauge which way shares of Diamond Offshore Drilling, Inc. (NYSE:DO) will swing over the next couple of quarters. In recent trading activity, the stock has been seen near the $10.93 level. Many investors pay increased attention to shares when they are nearing notable historical highs or lows. Over the past 52 weeks, the stock has touched a high price of 21.22, and seen a low price of 8.98. Looking at some additional historical stock price information, we note that shares have seen a move -23.62% over the previous 12 weeks. If we pull in closer to look at performance over the past month, we see that shares have seen a change of 5.1%. Over the last 5 trading sessions, the stock has moved -2.58%. Investors will most likely be keeping their eyes peeled to see how the stock performs heading into the next round of earnings reports.
Some investors may be looking to trade the trend and capitalize on strong current performers. Other investors may look to take a contrarian approach. This can involve looking for names that have been overlooked by the crowd. There are many different contrarian approaches that investors may choose to use. Going against the crowd may require a lot more homework and confidence. There may be hidden gems out there, but is may be wise to investigate why nobody else seems to want to get into the name. Finding that perfect strategy may take a lot of study and dedication. Taking shortcuts in the market can have severe negative effects on the long-term health of the portfolio.
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