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By Jason Zweig | Nov. 16, 2018 12:00 p.m. ET
The stock market used to reward companies for beating Wall Street analysts’ expectations of how much they could earn. That may be changing.
So far this quarter, through Wednesday morning, 161 companies in the S&P 500 that have announced better-than-expected earnings have had their stock price pounded down anyway, according to John Butters, senior earnings analyst at FactSet. From two days before the earnings announcement through the second day afterward, their shares have averaged a 5.5% loss....
To read the rest of the column:
https://www.wsj.com/articles/upside-earnings-surprises-have-a-downside-1542387601
For further reading:
Books:
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
Articles and other research:
Can You See the Future? Probably Better Than Professional Forecasters