Backtest
The backtest results reveal that IP shows a strong immediate positive return of 2.53% within 3 days after an earnings beat, though this gain diminishes over 10 days and slightly recovers by 30 days. Conversely, earnings misses lead to an initial negative return but recover positively over 10 and 30 days, indicating a delayed market rebound. This suggests that IP's stock reacts quickly to positive surprises but takes time to recover from disappointments.
The analysis indicates that short-term trading around earnings beats may be more profitable, while longer holding periods benefit from rebounds after misses.
Investors should consider short-term strategies for earnings beats and medium-term holds for earnings misses to optimize returns.