forward earnings

Forward P/E charts overstate their signal. Long-run returns are driven more by earnings growth, buybacks and dividends.

“Forward earnings” and PEs are biased, create unduly upbeat valuations, weaken the quality of earnings – and thus eventually induce losses.

Airlie's Will Granger and IML's Marc Whittaker analyse 3 stocks with big earnings potential, and each share one they particularly like.

Next year’s estimated earnings massively exceed today’s actual earnings, and the market’s P/E is sky-high. They augur much lower returns.