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

19 tickers firing right now

TickerCompanySectorChangeScore

MTBM&T Bank CorpFinancial Services+0.82%75[9–95]WINGWingstop Inc.Consumer+2.42%72[6–95]SLBSLB (Schlumberger)Energy+0.16%69[5–95]RPDRapid7 Inc.Technology+1.08%68[5–95]CATCaterpillar Inc.Industrials+2.31%66[5–95]TENBTenable HoldingsTechnology+2.05%66[5–95]TOSTToast Inc.Technology+1.92%64[5–95]KIMKimco RealtyReal Estate+0.14%62[5–95]ZBRAZebra TechnologiesTechnology+0.11%62[5–95]CFGCitizens Financial GroupFinancial Services+0.99%62[5–95]DUKDuke EnergyUtilities+0.34%62[5–95]GGGGraco Inc.Industrials+0.31%62[5–95]TFCTruist FinancialFinancial Services+0.37%62[5–95]ASAmer SportsConsumer Cyclical+0.33%61[5–95]CUZCousins PropertiesReal Estate+1.38%61[5–95]XPOXPO Inc.Industrials+3.54%60[5–95]JKHYJack Henry & AssociatesTechnology-0.90%60[5–95]AMHAmerican Homes 4 RentReal Estate-0.88%59[5–95]WMBWilliams CompaniesEnergy+1.91%58[5–95]

Disclaimer. Pattern matches are research signals, not investment advice. Past performance of an academic effect does not guarantee future returns. Forward-return tracking for Framler's own implementation begins 2026-05-16 after the calibration window closes.