The backtest results for LOW following earnings beats show a moderate short-term positive response, with a 50% win rate over 3 days and a 64.29% win rate over 10 days, yielding small average returns of 0.27% and 0.55% respectively. However, the 30-day win rate drops to 35.71%, with a slight negative average return of -0.20%. This suggests that while initial reactions to earnings beats are somewhat favorable, the longer-term performance tends to weaken.

The data indicates that gains are mostly realized within the first 10 days post-event, with a maximum return of 1.23% occurring around day 8.

Investors might consider short-term positions in LOW after earnings beats but should be cautious about holding beyond the medium term due to diminishing returns.

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The backtest results show that LOW stock consistently achieved a 100% win rate across 3-day, 10-day, and 30-day periods following an earnings miss, with returns of 5.49%, 4.92%, and 7.20% respectively. This indicates a strong positive price reaction despite the earnings disappointment, peaking at a 6.70% return on day 18. The analysis suggests that the market may have anticipated the miss or valued other factors positively. Investors might consider buying LOW shares after earnings misses to capitalize on this historically favorable rebound.

The backtest results show that the Specialty Retail Industry experienced no significant impact following earnings beats, with a maximum return of only 1.29% observed 14 days after the event. This indicates that earnings beats in this sector do not translate into meaningful price movements or sustained gains. Consequently, investors should be cautious about expecting strong positive returns solely based on earnings beats in the Specialty Retail Industry, as the event does not appear to drive notable market reactions or investment opportunities.

The backtest results show that earnings misses in the Specialty Retail Industry have no significant impact on the industry's stock performance, with a maximum return of -0.11% observed over the sample period. This negligible effect suggests that the market does not strongly react to earnings misses within this sector. Consequently, investors might consider that earnings misses in Specialty Retail do not provide actionable signals for trading or portfolio adjustments.

Backtest LOW Earnings Beat and Miss Expectations

Find all upcoming company earnings reports scheduled for feb 25 2026. Get details on which companies are reporting and their expected results.

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