With earnings reports occurring in their 2nd quarter the stock market has been going through some up's and down's and what does this mean for you? In simple terms - companies are driven off their earnings to determine if they're under/ up to par / beating earnings projected for their year which would in turn drive the company's value up or down.
"If earnings are up that means the stock should go up" - while for many company's this is true, that is not always the case. My investment in TAP (Molson Coors) is reflective of that. Revenue is growing at 89.42% and earnings growth is at 311.40% but with it's recent acquisitions the company is paying down it's debt leaving investors hopeful of its dividend payment at +5.08% 5 year growth rate however today the stock closed at $87.54 (-.99)
What does that have to do with today's post? Well, when it comes to reading earnings reports many, times you can not speculate the future but projections are set in place as a unit of measure. When investing in your stocks it is highly recommended that you "know" what you are investing in. In this case, TAP is a company I am comfortable with because Molson Coors has been around since 1774 and while cannabis is now becoming a competitor to alcohol, there are still people who would rather drink than smoke. Additionally, the craft beer industry has risen with Anheuser Busch and Molson Coors picking up many of these smaller craft brands.
This is what I know - Molson Coors is not going away. The price of the stock can go up or can go down. The future is not guaranteed nor does the value of the company guarantee a growth in the stock, which falls into what I want to know.
This is just one stock I hold in my portfolio, and as you continue to grow yours, take into consideration: what you know / what you can know / and what you may want to know when investing. At the end of the day this is you taking charge of your financial freedom.
I would love to hear any comments or suggestions, be sure to leave a response below!