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- Title
Why Great Stocks Aren't Always Great Companies.
- Authors
Frigo, Mark L.; Litman, Joel; Welling, Glenn W.
- Abstract
The article discusses the difficulty of using traditional measures to evaluate corporate performance. Many investors consider earnings-per-share (EPS) an important indicator. But EPS either overlooks or misinterprets significant portions of the balance sheet. Total shareholder return (TSR) is not an appropriate measure, either, because stock prices can rise due to unrealistic investor expectations. When those expectations fail to materialize, the share price of even a solid and reputable company can suffer.
- Subjects
UNITED States; STOCKS (Finance); EARNINGS per share; RATE of return; INDUSTRIAL management; INVESTMENTS; FINANCIAL statements; COCA-Cola Co.; ABBOTT Laboratories Inc.; AMES Department Stores Inc.
- Publication
Strategic Finance, 2002, Vol 83, Issue 9, p8
- ISSN
1524-833X
- Publication type
Article