The backtest results show that BAC has a 38.46% win rate over 3 days and a modest 0.62% average return shortly after earnings beats. Over 10 and 30 days, the win rates improve slightly to 53.85%, but returns remain flat or negative, indicating limited sustained gains. This suggests that while BAC may experience some immediate positive price reaction, the effect is weak and inconsistent over the medium term. Investors should be cautious about expecting strong post-earnings returns from BAC and consider short-term trading rather than long-term holding based on earnings beats.

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The backtest results show that BAC consistently achieved a 100% win rate across 3-day, 10-day, and 30-day periods following an earnings miss, with returns increasing from 1.11% at 3 days to 10.05% at 30 days. This indicates a strong positive price reaction despite the earnings miss, suggesting market resilience or other factors driving gains. Investors might consider that BAC's stock tends to rebound and generate significant returns within a month after an earnings miss, presenting a potential opportunity for strategic entry or holding during such events.

The backtest results show that the Banks Industry experienced a slight negative impact following earnings beats, with a maximum return of only 0.58% occurring 59 days after the event. This indicates that despite positive earnings surprises, the sector did not generate significant positive returns in the medium term. The analysis suggests that earnings beats in the Banks Industry may not reliably translate into strong price appreciation. Investors should be cautious and consider that positive earnings surprises in this sector might not lead to substantial gains.

The backtest results show that when the Banks Industry misses earnings expectations, the impact is consistently negative with a maximum return decline of 0.15% on the event day. This indicates a weak immediate market reaction to earnings misses within this sector over the tested period from 2023 to 2026.

The minimal magnitude of the negative return suggests limited downside risk, implying that the market may have already priced in such misses or that the sector's fundamentals mitigate sharp declines.

Investors should be cautious but may not expect significant losses solely based on earnings misses in the Banks Industry.

Backtest BAC Earnings Beats Expectations

Find all upcoming company earnings reports scheduled for jan 14 2026. Get details on which companies are reporting and their expected results.

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