Post-earnings drift continuation

Bullish

Earnings beat + price still rising afterward + sector also supportive + options flow bullish. Classic PEAD.

PRIMARY SOURCE
Bernard-Thomas 1989
Ball-Brown 1968
Pan-Poteshman 2006
TYPICAL HORIZON
30-60 days
FACTORS USED
peadmomentumspilloveroptions

What it means

The company beat earnings expectations, the market responded with a sustained (not one-day) positive price reaction, the sector isn't dragging the ticker, and derivatives markets are also positioning bullishly. All four data sources confirm the same story.

Why it works

Bernard-Thomas 1989 post-earnings drift is one of the most replicable anomalies in finance — the top decile of earnings surprises earns ~8% excess return over the following 60 days. Pan-Poteshman 2006 options flow adds a cross-asset confirmation signal.

Watch out

The drift weakens for companies that beat but guide lower for the next quarter. Also, accelerated drift reversal happens if short interest builds rapidly post-beat (indicates smart money betting against the move).

Live matches

8 tickers firing right now
TickerCompanySectorChangeScore
UALUnited AirlinesIndustrials+1.74%70[5585]AMATApplied Materials, Inc.Technology+3.65%70[5684]RTXRTX CorporationIndustrials-3.75%68[5383]FDXFedEx CorporationIndustrials-0.75%68[5383]DALDelta Air LinesIndustrials+1.22%68[5482]DHRDanaher CorporationHealthcare-0.32%67[5381]DEDeere & CompanyIndustrials-2.82%67[5381]ASMLASML HoldingSemiconductors+3.17%65[5278]
Disclaimer. Pattern matches are research signals, not investment advice. Past performance of an academic effect does not guarantee future returns. Forward-return tracking for DeepVane's own implementation begins 2026-05-16 after the calibration window closes.