The backtest results for PAYX show a strong positive response following earnings beats, with 72.73% win rate over 3 days and an impressive 90.91% win rate over 30 days, accompanied by a 4.19% average 30-day return. However, short-term returns over 10 days are slightly negative, suggesting some initial hesitation in the market. This pattern indicates that while immediate gains may be modest, longer-term holding post-earnings beat tends to be rewarding. Investors might benefit from maintaining positions in PAYX for up to a month after an earnings beat to capture most of the upside.

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The backtest results show that the Professional Services Industry exhibited no significant price impact following earnings beats over the three-year period studied, with a maximum return of only 1.07% occurring 14 days after the event. This minimal effect suggests that earnings beats in this industry do not translate into meaningful short- or medium-term market moves.

Consequently, the lack of response indicates a neutral or inefficient market reaction for this sector's positive earnings surprises.

Investors should temper expectations about exploiting earnings beats in the Professional Services Industry as a reliable source of alpha.

Backtest PAYX Earnings Beats and Industry Performance

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