We’re winding down earnings season, and the old Wall Street adage that “earnings drive stock prices” continues to prove true. Over the past week, several companies reported strong earnings, which led to their stocks surging on the news.
While there are a number of factors that can influence how a stock performs, over the long run, a company’s profitability will have some of the biggest impacts on a stock’s price.
This post originally appeared at 24/7 Wall St.