what is Whisper Number

**Whisper Numbers: A More Accurate Gauge of Earnings Expectations** 1. **Definition and Accuracy**: - Whisper numbers are unofficial, unpublished earnings per share (EPS) forecasts that circulate among Wall Street professionals, often representing the true expectations of analysts more accurately than the officially published consensus estimates. - According to a study, whisper numbers tend to miss actual reported earnings by 21%, while the officially published consensus estimates miss actual results by an average of 44%. 2. **Impact on Stock Performance**: - Stocks have been shown to react more significantly to whisper numbers than to the consensus earnings estimates. - A trading strategy based on whisper numbers, either before or after a company's earnings release, has been demonstrated to outperform the S&P 500 significantly. 3. **Sources and Considerations**: - Whisper numbers originate from various sources, including hedge fund managers, stock newsletters, investment forums, and sometimes even company insiders. - Investors should exercise caution when using whisper numbers, as they are based on investor sentiment and may not always reflect the full picture of a company's financial health. 4. **Investor Utilization**: - For long-term investors, whisper numbers may be less crucial, but they can be beneficial for those looking to make short-term trades or analyzing stocks with little analyst coverage. - It is important to consider whisper numbers alongside other financial indicators and to approach them with a critical eye, as they are not officially sanctioned estimates. In conclusion, whisper numbers offer a more accurate gauge of earnings expectations compared to the officially published consensus estimates. They can significantly influence stock performance, and while they should be used with caution due to their unofficial nature, they can provide valuable insights for investors, especially for those looking to make short-term trades or analyzing stocks with limited analyst coverage.