In the following video, Motley Fool consumer goods analyst Blake Bos gives some good advice: Know what you're looking for before you read an earnings report. If you know what you would or wouldn't like to see ahead of time, you can formulate your own opinion and protect yourself from making poor investing choices based on market mob mentality.
He uses SodaStream (NASDAQ:SODA) as an example and notes that while shares sold off a little due to low guidance, 2012 was an excellent year and the future looks bright for continued strong growth. Blake gives investors the metrics he'll be watching to know if the company is staying on target.
Blake Bos owns shares of SodaStream. The Motley Fool recommends and owns shares of SodaStream. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.