When evaluating a firm's stock, past performance
A) is useless since investors are only concerned with future returns.
B) can provide insight about the firm's future direction.
C) is only important if the firm is in a stable industry.
D) is not used by stock analysts.

Question

Quizplus · Accepted Answer

Past performance can offer valuable insights into a firm's potential future direction, including trends in growth, profitability, and risk management, which can inform investment decisions.

When Evaluating a Firm's Stock, Past Performance