What strategies can traders use with JCI's earnings surprises?
3/29/2025 05:43pm
**Traders can use the following strategies based on JCI's earnings surprises:**
1. **Buy on Earnings Miss Expectations**: Given that JCI has historically shown strong positive performance after earnings misses expectations, traders can consider buying the stock after such events. The 30-day win rate is 100%, indicating a high probability of a positive return in the short term following an earnings miss.
2. **Hold on Earnings Beat Expectations**: While JCI also shows positive performance after earnings beats expectations, the returns are more modest compared to the performance after a miss. The 30-day win rate is 76.92%, suggesting a lower risk of negative returns but also lower potential gains.
3. **Risk Management**: Traders should be aware of the potential for significant volatility following earnings releases. The maximum return observed following an earnings beat expectation is 16.45%, and 13.5% following a miss, indicating that while there is potential for gains, there is also a risk of significant losses.