The backtest results show that LOW has a 46.15% win rate over 3 days, 53.85% over 10 days, and only 30.77% over 30 days after earnings beat expectations, with negative average returns across all periods. This suggests that despite positive earnings surprises, the stock tends to underperform or fail to sustain gains in the medium term. Consequently, investors should be cautious and may consider limiting exposure to LOW immediately after earnings beats, as the typical price reaction does not yield consistent positive returns.

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The backtest results reveal that when the Specialty Retail Industry beats earnings expectations, there is no significant impact on the industry’s returns, with a maximum return of merely 0.85% occurring nine days after the event. This suggests that earnings surprises within this sector do not translate into meaningful price movements. Consequently, the data implies that investors should not rely on earnings beats alone as a signal for Specialty Retail investment decisions, but rather consider other factors or indicators for trading strategies in this industry.

The backtest shows that Lowe's earnings beat positively impacted the Construction and Engineering industry while negatively affecting the Forestry and Paper Products sector over a roughly one-month period. This suggests stronger demand for home improvement and construction-related activities post-earnings beat, with a corresponding decline in raw material demand. The market overall experienced a positive impact but less pronounced than the direct industry responses. Investors may consider overweighting Construction and Engineering sectors when Lowe's reports earnings beats, while approaching Forestry and Paper Products with caution due to anticipated weakening demand.

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Backtest LOW Earnings Beat Expectations

Find all upcoming company earnings reports scheduled for aug 20 2025. Get details on which companies are reporting and their expected results.

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