Loop intact: the stock beats, guidance is raised, and price holds above its 50-day and 200-day averages, so the multiple keeps rolling forward onto higher forward earnings.
Why a high price-to-earnings premium survives or snaps The beat-and-raise loop keeps a rich multiple supportable; each of the three failure gates severs one leg and flips the premium into a de-rating. premium holds loop intact premium supported beat-and-raise rolls themultiple onto forward EPS forward growth embedded stock must grow into the multiple revenue + EPS beat vs consensus full-year guide raised forward EPS lifted above 50-day & 200-day momentum holds longs gate C · growth reset same price, higher multiple gate B · momentum lost 50-day then 200-day break gate A · no raise guide miss / beat-without-raise e.g. Broadcom June 2026 miss de-rating is proportionally larger the higher the starting multiple trip one gate and the loop snaps