Earnings Momentum

Earnings Momentum - earnings momentum is a term used to describe a pattern of performance where a stock shows increased value from one period to another. This a prime indicator that when a stock shows earnings momentum, it most likely cause the stock price to rise as well. The increase of earnings per share at an increasing rate is also Called Earnings momentum.. An example of Earnings Momentum is when a company's earnings per share increase 10 percent then 15 percent and then 25 percent in consecutive years There doesn't have to be an exact pattern but it has to show increases form year to year, and it has to be sustained over a period or years