Earnings Beat + Quality Momentum
Post-earnings-announcement drift is one of the more durable empirical anomalies in equity markets: stocks that beat earnings expectations tend to keep outperforming for several weeks afterward, as the market gradually digests the new information.
This screen looks for the cleanest version of that signal — a recent quarterly beat, positive 1-month and 3-month price momentum, and a Tessera Rating above 65. The combination filters for beats that are real and confirmed by the market, rather than noise that gets faded. Read the regime detection methodology for context on when post-earnings drift is most effective.
Criteria
- Earnings: Most recent quarterly EPS beat consensus
- Price momentum: Positive 1-month and 3-month total return
- Quality score: Tessera Rating ≥ 65 / 100
- Earnings recency: Latest earnings within the trailing 90 days
Underlying methodology
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Sign up freeFrequently asked questions
What is post-earnings-announcement drift?
An empirical pattern: stocks that beat earnings expectations tend to keep outperforming for several weeks after the announcement, as the market gradually digests the new information. The drift is most reliable when the beat is meaningful and combined with positive price momentum and quality fundamentals.
How is 'beat' defined?
Reported quarterly EPS exceeded the consensus estimate at the time of the report. The screen does not currently weight by beat magnitude — a 1-cent beat counts the same as a 50-cent beat — but the quality and momentum filters help separate meaningful beats from noise.
Does this screen work in all regimes?
Post-earnings drift is most effective in neutral and bullish regimes. In sharp bear markets, even genuine earnings beats can be sold into. Pair with regime detection to avoid overweighting drift candidates during market dislocations.