The market has been grinding higher for few months, now we are approaching earnings season. The earnings season always leads to some surprises.
When companies announce earnings some have huge surprises either to upside or downside. Such surprises can lead to start of big moves if that earnings is not priced in to market. This is called PEAD or Post Earnings Surprise Drift.
Earnings surprises are more pronounced on smaller stocks. Many of these stocks are not actively followed by analysts and the only time they come to limelight are during earnings season. This is how new leaders in market arise. Often unheard of companies and market segments become star of an earnings season.
Tracking earnings can help you find some big moves.
When companies announce earnings some have huge surprises either to upside or downside. Such surprises can lead to start of big moves if that earnings is not priced in to market. This is called PEAD or Post Earnings Surprise Drift.
Earnings surprises are more pronounced on smaller stocks. Many of these stocks are not actively followed by analysts and the only time they come to limelight are during earnings season. This is how new leaders in market arise. Often unheard of companies and market segments become star of an earnings season.
Tracking earnings can help you find some big moves.
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