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 low or negative, indicating limited sustained price appreciation. This suggests that while BAC may experience some immediate positive reaction, the longer-term impact of earnings beats is muted. Investors should be cautious about expecting significant gains from BAC earnings surprises and consider short-term trading strategies rather than long-term holds.

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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, with the maximum return of 12.37% realized after 44 days. The analysis suggests that BAC's stock tends to rebound and gain momentum after disappointing earnings announcements. Investors might consider this pattern as an opportunity to buy BAC shares post-earnings miss for potential medium-term gains.

The backtest results show that the Banks Industry experienced a slight negative impact following earnings beats, with a maximum return of only 0.70% occurring 27 days after the event. This indicates that despite positive earnings surprises, the sector did not significantly benefit in terms of price appreciation during the tested period.

The minimal positive return and overall negative impact suggest that other factors may be influencing the Banks Industry's performance beyond earnings beats alone.

Investors should be cautious about expecting strong gains solely from earnings beats in the Banks Industry and consider broader market conditions.

The backtest results show that when the Banks Industry misses earnings expectations, the sector experiences a negative impact with a maximum return decline of 0.57% on the event day. This consistent negative reaction across 547 events indicates a reliable pattern of immediate adverse market response. Investors should be cautious around earnings misses in the Banks Industry, as these events tend to trigger short-term downside pressure. This insight suggests a defensive stance or risk mitigation strategies may be prudent when anticipating or reacting to earnings misses in this sector.

The backtest results reveal a positive market impact following Bank of America's earnings beat, with the Consumer Finance industry showing significant gains over 47 days, while the Chemical Products sector experienced notable declines over 17 days. This divergence reflects the financial sector's improved credit conditions benefiting consumer finance, contrasted with the adverse effects of higher financing costs on capital-intensive industries. Investors should consider overweighting Consumer Finance stocks post-earnings beat and be cautious with Chemical Products exposure, as the event signals sector-specific shifts driven by credit and capital allocation dynamics.

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The backtest reveals that Bank of America's earnings miss negatively impacted the Professional Services industry over a 31-day period, with a notable decline in industry value. This result aligns with expectations, as weaker bank earnings often signal broader economic concerns that reduce corporate spending on professional services. Meanwhile, the overall market showed a positive impact, indicating sector-specific sensitivity rather than a market-wide downturn. Investors should consider the vulnerability of Professional Services to financial sector earnings misses and adjust exposure accordingly to mitigate risk during such events.

Backtest BAC Earnings Beat 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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