Triple Play

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.

BREAKING DOWN '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. Guidance

    Information that a company provides as an indication or estimate ...
  2. Earnings Surprise

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

    An analyst's estimate for a company's future quarterly or annual ...
  4. Triple Exponential Average - TRIX

    A momentum indicator used by technical traders that shows the ...
  5. Earnings

    The amount of profit that a company produces during a specific ...
  6. Forward Earnings

    A company's forecasted, or estimated, earnings made by analysts ...
Related Articles
  1. Markets

    Surprising Earnings Results

    Consensus estimates can send stocks spiraling - but are they representing reality?
  2. Investing

    Strategies For Quarterly Earnings Season

    Breeze through consensus estimates like the biggest Wall Street forecasters.
  3. Stock Analysis

    7 Picks For A Sector That's Heating Up

    We're right in the middle of earnings season, which means that most mid- and large-cap companies have reported results, with small-cap stocks getting set to move into the spotlight. #-ad_banner-#And ...
  4. Stock Analysis

    This Sector's Earnings Are Just Heating Up

    We're right in the middle of earnings season, which means that most mid- and large-cap companies have reported results, with small caps getting set to move into the spotlight. #-ad_banner-#And ...
  5. Options & Futures

    5 Earnings Season Investing Tips

    These essential tips will get you through the earnings season.
  6. Stock Analysis

    Target Thumps Q2 EPS Estimates, Lifts Guidance (TGT)

    Target (NYSE: TGT) hit the bulls-eye with its latest set of quarterly results. On Wednesday, the company reported its second quarter figures, with earnings landing comfortably above analyst ...
  7. Charts & Patterns

    Analyzing Chart Patterns: Triple Tops And Bottoms

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The triple top and triple bottom are reversal patterns that are formulated when a security attempts to move past a key level ...
  8. Economics

    What are Earnings?

    The amount of profit that a company produces during a specific period, which is usually defined as a quarter (three calendar months) or a year.
  9. Investing

    Investor's Big Mistake Is A Buying Opportunity For This Retail Giant

    <p>If you had any doubt about the market’s manic-depressive nature and the fact that rational investors can make out-sized gains, then Octob...
  10. Stock Analysis

    Apple Fourth Quarter Earnings Preview

    On Thursday, October 25, 2012, Apple (Nasdaq:AAPL) will release its fourth quarter earnings. In the past month, expectations have risen for the upcoming results. The consensus analyst estimate ...
RELATED FAQS
  1. What are the differences between a Triple Top pattern and a Triple Bottom Pattern?

    Understand the difference between the triple top and triple bottom reversal patterns and how each is formed and interpreted ... Read Answer >>
  2. How do I build a profitable strategy when spotting a Triple Bottom pattern?

    Learn about the triple bottom chart pattern and how to create a profitable trade strategy based on this pattern, including ... Read Answer >>
  3. Why do analysts sometimes give an overweight recommendation on a stock?

    Learn more about analysts' ratings and why financial analysts may give a stock an outperform recommendation based on positive ... Read Answer >>
  4. How do I build a profitable strategy when spotting an Triple Top pattern?

    Learn how to create profitable trade strategy based on the triple top chart pattern, including optimal entry and exit points ... Read Answer >>
  5. What is earnings management?

    Before diving into what earnings management is, it is important to have a solid understanding of what we mean when we refer ... Read Answer >>
  6. What is the difference between earnings and revenue?

    Understand how a company makes revenue and how it makes earnings. Learn the difference between revenue and earnings and how ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center