Definitions for "Earnings Momentum"
Keywords:  momentum, abc, previous, per, growth
When a corporation's earnings per share increase from one period to another. The usual effect is a rise in a stock's price. A corporation has earnings momentum, for instance, when its earnings per share are 24% this year, with the previous year's being 16%. See: Earnings Per Share
When a company's earnings per share grow from year to year at an ever-increasing rate, that pattern is described as earnings momentum. One example might be a company whose earnings grow one year at 10%, the next year at 18%, and a third year at 25%. In many cases, this momentum triggers an increase in the share's share price as well, as investors identify the share as one they expect to continue to grow and increase in value.
A pattern of increasing rate of growth in earnings per share from one period to another, such as earnings per share of 20% one year and 30% the following year. This usually causes a stock price to go up.
Earnings price ratio Earnings response coefficient