Triple Play

AAA

DEFINITION of 'Triple Play'

In investments, a stock that simultaneously beats analyst expectations for revenue and earnings and also raises earnings guidance for future quarters. The term triple play was first popularized by Bespoke Investment Group in the mid-2000's and is seen as a highly positive sign for the stock. Some investors like to look at triple-play stocks as a preliminary filter for finding good stocks to research for investment.

INVESTOPEDIA EXPLAINS 'Triple Play'

A triple play is seen as a highly positive sign because it indicates that not only is a company growing its business and earnings, but also doing it in a way that is expected to last over the longer term. Often when a stock beats revenue and earnings estimates, analysts wonder if the higher numbers can be expected to continue. If the company does not raise guidance, it may indicate that management expects a drop in the next period.

RELATED TERMS
  1. Analyst Expectation

    A report issued by an individual analyst, investment bank or ...
  2. Earnings

    The amount of profit that a company produces during a specific ...
  3. Earnings Estimate

    An analyst's estimate for a company's future quarterly or annual ...
  4. Earnings Surprise

    Occurs when a company's reported quarterly or annual profits ...
  5. Guidance

    Information that a company provides as an indication or estimate ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value ...
Related Articles
  1. Economics

    Earnings Guidance: Can It Accurately ...

  2. Insurance

    Everything Investors Need To Know About ...

  3. Markets

    Whisper Numbers: Should You Listen?

  4. Markets

    Surprising Earnings Results

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center