Lauren Hua

What does EPS growth mean?

EPS growth stands for Earnings Per Share growth. It is a financial metric that measures the increase in a company’s earnings per share (EPS) over time. EPS is calculated by dividing the company’s net income by the number of outstanding shares of its common stock. EPS growth is significant for investors because it indicates how fast a company’s profitability is growing on a per-share basis. A higher EPS growth rate generally suggests that a company is performing well and increasing …

Read MoreWhat does EPS growth mean?

The disadvantages of dividend stocks

Investing in dividend stocks is a popular strategy with investors as it provides regular income and is thought of as being less volatile than growth stocks. However, there are also several disadvantages to consider: Lower Growth Potential Dividend-paying companies typically distribute a portion of their earnings to shareholders as dividends. This means they may have less capital available for reinvestment in business expansion or innovation compared to companies that retain all earnings for growth. As a result, dividend stocks may …

Read MoreThe disadvantages of dividend stocks

When do small caps outperform large caps?

We previously wrote about why large caps have outperformed small cap but in this article we discuss the environments where small-cap stocks can outperform large-cap stocks. Early Stages of Economic Recovery Small-cap stocks are often more sensitive to economic cycles and can benefit significantly when the economy starts to recover from a downturn. During this phase: Small-cap companies may experience faster revenue growth as economic activity picks up. They can quickly adapt to changing market conditions and capitalize on new …

Read MoreWhen do small caps outperform large caps?

All about market breadth

Analysing market breadth can provide insights into the overall health and direction of a financial market or specific market index. There are several ways that the study of market breadth can be useful. Indicator of Market Strength: Market breadth measures the number of individual stocks or securities participating in a market move. A strong market rally accompanied by a broad participation (many stocks advancing) indicates widespread confidence and strength in the market. Conversely, if only a few stocks are driving …

Read MoreAll about market breadth

Why don’t petrol prices decrease when crude oil prices fall?

The relationship between crude oil prices and petrol prices at the pump can be complex and influenced by various factors beyond just the price of crude oil. Here are several reasons why petrol prices may not decrease proportionately when oil prices fall: Refining Costs and Margins: Crude oil needs to be refined into petrol and other petroleum products before it reaches consumers. Refining costs, which include processing, distribution, and refining margins (profit for refineries), can remain relatively stable or fluctuate …

Read MoreWhy don’t petrol prices decrease when crude oil prices fall?