Earnings growth is the highest priority for any organization. This is because if a start-up or well-known company doesn't make money, it won't last long. So, what is earnings growth? Study a company's revenues over a given period, subtract the production cost, and you have earnings. By the way, this is also considered the most important variable influencing share price. But, expectations of earnings play a significant role. Earnings Estimates & Share Price Movements Frequently, we have seen a decline in the stock price despite earnings growth and a rally in price following an earnings decline. This is largely the result of a company's earnings failing to meet market expectations. Earnings estimates embody analysts' opinions on factors such as sales growth, product demand, competitive industry environment, profit margins, and cost control. Thus, earnings estimates serve as a valuable tool, while making investment decisions. Earnings estimates also help analysts assess the cash flow to determine the fair value of a firm. Thus, investors should look for stocks ready to make a big move. Hence, investors need to buy stocks ...