The Investment Factor Analysts Overlook

The end of a year is one of the important periods in the economy world as balance sheets are announced. But for some companies the valuable periods are not limited to the last months of the year because of the seasonal changes.

According to the Deloitte data, while the biggest fashion retail store Macy’s Inc makes the highest profit in December, Six Flags amusement park has the highest rate in summer months.

According to the research of The Review of Financial Studies, although these income and profit changes are not surprising, many analysts tend to ignore the seasonal factor. The research states that the percentage of the analysts who predicts seasonal differences between the quarters is 93.

The stock income of a company is certainly higher in a specific quarter than the other three says the research report. It also mentions that the analysts who ignore the seasonal differences tend to over estimate the period after the profitable quarter.

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