Earnings, valuation, and guidance — read past the headline to the number that matters.
Revenue and EPS headlines get the attention, but the report itself — margins, guidance, and management commentary — usually explains the price reaction better than the top-line beat or miss.
Growing revenue with shrinking margins can be a warning sign; a company can be selling more and making less. Watch gross margin and operating margin trends over several quarters, not just one print.
P/E compares price to earnings; P/S compares price to revenue for companies without profits yet. Neither means much alone — compare against the company's own history and its direct sector peers.
Markets are forward-looking. A great quarter with cautious forward guidance often sells off, while a weak quarter with a raised outlook can rally. Always weigh the guidance against the print.
Cash, debt, and free cash flow determine how much runway a company has. A company with strong margins but heavy debt carries very different risk than one with light debt and modest margins.