Backtest
The backtest results reveal that RLJ's earnings beats lead to a strong short-term positive market reaction with win rates of 66.67% at 3 and 10 days, rising to 75% at 30 days, though returns turn negative after 30 days. Conversely, earnings misses show an initial positive return over 3 days but significant declines over 10 and 30 days. The Hotel & Resort REITs industry shows no significant price impact from earnings beats or misses. This suggests investors can benefit from short-term momentum in RLJ post-earnings beat but should be cautious with longer holds or earnings misses.