I look at several sites for estimates for the stock I follow. Estimates are valuable because the stock market always looks to the future. So I pick up estimates because they are also looking towards the future. Most estimates are fine. Although sometimes the market just turns quickly and estimates become way off.
I try to pick up estimates for revenue, EPS, net income and cash flow over the next 2 or 3 years. Often 4-Traders' site has more information than the Reuter's site.
I usually get my estimates from Reutersor from 4-Traders sites. However, I sometimes get my TD Waterhouse or anywhere I can. It really depends on the stocks. However, both Reuters and 4-Traders sites tend to have estimates for the bigger TSX stocks.
If I am reviewing a stock after at least one quarterly report is received, I check the change in things like revenues, earnings, and cash flow over the 12 months period ending at the end of the quarter to the 12 month period ending at the end of last year to see if the values are going in the direction the estimates say.
The point in looking at estimates is to try to get a feel for the future. However, you should also not put too much store in them either. It is rather silly when companies are punished for missing a quarterly estimate. Although sometimes when a company is punished for missing some estimate that can provide you with a good buying opportunity.
On my other blog I am today writing about WSP Global Inc. (TSX-WSP, OTC-WSPOF) ...continue...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.