Backtest
The backtest results reveal that MS shows a modest positive return only after 30 days following earnings beats, while earnings misses surprisingly lead to consistent and strong positive returns across all short and long-term periods. In contrast, the Capital Markets Industry overall exhibits negligible price reactions to both earnings beats and misses. This suggests that MS’s stock behaves uniquely compared to its industry peers, with earnings misses potentially viewed as buying opportunities. Investors might benefit from a longer holding period after MS earnings beats and consider buying on earnings misses rather than relying on industry-wide trends.
