CEOs who mention 'growth' on earnings calls see outsized stock gains

  • 📰 CNBC
  • ⏱ Reading Time:
  • 49 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 72%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Companies with CEOs who make liberal use of positive words like 'growth' during earnings calls outperform their counterparts, a study finds.

S&P Global Market Intelligence finds that CEOs who used buoyant language to describe revenue, earnings or profitability outperform counterparts.

Shares of companies with chief executives who make liberal use of positive words to describe financials during earnings conference calls outperform those at businesses with more reserved CEOs, sometimes by as much as 9% per year, S&P Global Market Intelligence found in a new study. They then compared the performance of long-short stock portfolios based on how frequently management used positive descriptors to characterize earnings results.

"Individual stock returns tend to be dominated by company-specific news and events and they tend to be ... very, very noisy: Apple, Tesla and so on, so forth," Zhao said a separate interview with CNBC. Of course, it isn't crazy to assume that management teams that mention "growth" and "expansion" may be in a better position to do so. That is to say, their company's financial performance in recent quarters may simply be healthy and therefore deserving of praise.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Good example of a framing bias that investors face

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Sprint Stock Soars 77% On T-Mobile Merger, Here’s Why One Expert Thinks It Could Keep SurgingSprint gained $15 billion in market value after its stock jumped on the merger news. So does this mean my plan will get more expensive? I love Sprint
Source: Forbes - 🏆 394. / 53 Read more »

Sprint Stock Soars 77% On T-Mobile Merger, Here’s Why One Expert Thinks It Could Keep SurgingSprint's stock increased 77% on the T-Mobile merger, here’s why 1 expert thinks it could keep surging: by skleb1234 skleb1234 T-Mobile is better
Source: Forbes - 🏆 394. / 53 Read more »

Charts flash warning for this travel stock ahead of earningsTravel earnings are on deck this week: Hilton, MGM, TripAdvisor and Expedia are reporting in the coming days. Watch out for one of those, says Mark Newton of Newton Advisors. He joins Quint Tatro of Joule Financial to discuss. TradingNation No worries. The Fed will buy their stock.
Source: CNBC - 🏆 12. / 72 Read more »