DEFINITION of 'Triple Play'

Triple play is a slang term for when a stock simultaneously beats analyst expectations for revenue and earnings, thenĀ 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. Play

    Play is a slang term that describes the positive aspects of an ...
  2. Analyst Expectation

    An analyst expectation is a report indicating how a particular ...
  3. Guidance

    Guidance is information that a company provides as an indication ...
  4. Triple Net Lease (NNN)

    A triple net lease assigns sole responsibility to the tenant ...
  5. Simultaneous Closing - SIMO

    Simultaneous closing is when two simultaneous transactions occur ...
  6. Triple Bottom Line (TBL)

    The triple bottom line (TBL) is a concept which broadens a business' ...
Related Articles
  1. Investing

    Surprising Earnings Results

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

    Earnings Forecasts: A Primer

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

    Strategies For Quarterly Earnings Season

    Breeze through consensus estimates like the biggest Wall Street forecasters.
  4. Investing

    Base Investments on Research, Not Cocktail Party Tips

    What investors should base their decisions on instead of cocktail party tips.
  5. Trading

    Triple Screen Trading System - Part 6

    Williams %R can confirm the strength of trends and warn of reversals. Find out how to use it as the second screen in this triple-screen system.
  6. Investing

    First Quarter Earnings Preview: Biotech Heavyweights

    The March quarter earnings season is getting underway soon, get ahead of the game with our biotech earnings preview.
  7. 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
  8. Trading

    Triple Screen Trading System - Part 2

    Market tide is the basis for making trading decisions in this three-part system.
  9. Managing Wealth

    Revenue Analyst: Job Description & Average Salary

    Learn what a revenue analyst does and what skills are needed to succeed in the position. Determine the education and experience required to work in this field.
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. How rapidly can expanding sales reduce a firm's earnings?

    In order to operate and make money, a company must spend money. Revenue - the dollar amount of sales - can be seen on a company's ... Read Answer >>
  3. Single, double and triple net leases

    Learn the ins and outs of net lease agreements, including the key differences between single net, double net and triple net ... Read Answer >>
  4. 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 >>
Trading Center