Triple Play

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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 Estimate

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

    Occurs when a company's reported quarterly or annual profits ...
  4. Earnings

    The amount of profit that a company produces during a specific ...
  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 ...
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