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. Earnings Estimate

    An earnings estimate is an analyst's estimate for a company's ...
  2. Guidance

    Guidance is information that a company provides as an indication ...
  3. Asset Play

    An asset play is an incorrectly-valued stock that is attractive ...
  4. Street Expectation

    Street expectation is the average estimate of a public company’s ...
  5. Triple Net Lease (NNN)

    A triple net lease assigns sole responsibility to the tenant ...
  6. Triple Witching

    An event that occurs when the contracts for stock index futures, ...
Related Articles
  1. Personal Finance

    Bespoke Post Review: Is It Worth It?

    Find out if Bespoke Post, the fast-growing, e-commerce subscription service for men's lifestyle and grooming products, is worth all of the hype in this review.
  2. Investing

    Stock Sell-offs on Robust Profits Is a Red Flag

    Investors are bidding up U.S. stocks before robust profit reports, but quickly sell afterwards.
  3. Investing

    Earnings Guidance: Can It Predict the Future?

    Explore the controversies surrounding companies commenting on their forward-looking expectations.
  4. Investing

    Earnings Beat Too-Low Expectations, Like They Always Do

    Stacked deck: Q3 earnings are coming in above expectations, likely because forecasts are, once again, too low. So why do analysts lowball estimates?
  5. Investing

    Wall Street's Exuberance May Signal Coming Bear Market

    Untamed Bull: analysts' extreme bullishness on corporate profits often precedes a big market drop
  6. Investing

    Tips For When To Buy, Sell Or Hold

    Knowing how to make sound snap decisions is a must for any broker.
  7. Investing

    Why Stocks Will Finish 2017 On a Bull Run

    The S&P 500 may gain another 5% or more through the end of 2017, if history repeats itself.
  8. Insights

    Earnings Forecasts: A Primer

    Learn how this key metric is calculated and how it is used to judge market performance.
  9. Investing

    Trump's First 100 Days Lifted These Dow Stocks

    The Dow gained an impressive 5.6% over Trump's first 100 days while 10 Dow stocks soared
  10. Investing

    Base Investments on Research, Not Cocktail Party Tips

    What investors should base their decisions on instead of cocktail party tips.
RELATED FAQS
  1. What is a pure play?

    A pure play is a company that invests its resources in only one line of business. As such, this type of stock has a performance ... Read Answer >>
  2. What is a triple tax-free municipal bond?

    At its core, a triple tax-free municipal bond is just like any corporate bond: it is a debt instrument, a loan given to a ... Read Answer >>
  3. When is earnings season?

    Earnings season is the period of time during which a large number of publicly traded companies release their quarterly earning ... Read Answer >>
Hot Definitions
  1. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  2. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
  3. Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better.
  4. Current Ratio

    The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
  5. Return on Investment (ROI)

    Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency ...
  6. Interest Coverage Ratio

    The interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a company can pay interest ...
Trading Center