According to @QCompounding, stocks are not lottery tickets but ownership claims on future profits, so price action should be anchored to changes in profit expectations rather than randomness (Source: @QCompounding on X, Dec 8, 2025). Traders can focus on catalysts that shift earnings outlooks—quarterly reports, guidance updates, and margin trends—and use metrics like EPS revisions, FCF yield, and ROIC to time entries and exits (Source: @QCompounding on X, Dec 8, 2025). Position sizing and risk should align with the conviction in forward profit compounding instead of short-term noise (Source: @QCompounding on X, Dec 8, 2025).

According to @QCompounding, Free Cash Flow Yield is calculated as free cash flow per share divided by stock price, and a higher FCF yield typically signals a cheaper stock valuation. Source: @QCompounding on X. Traders generally derive free cash flow per share from trailing 12-month free cash flow, defined as cash from operations minus capital expenditures, divided by weighted average diluted shares, which standardizes comparisons across companies for valuation screens. Sources: U.S. SEC Investor.gov, Investopedia. They then compare a stock’s FCF yield to sector or peer medians to identify relative value and rank candidates in screening workflows. Source: Investopedia.