The backtest results show that KO achieved a modest positive return of 0.52% over 3 days with a 54.55% win rate, but the win rate and returns slightly declined over 10 and 30 days. This suggests that while KO earnings beats tend to produce a small short-term price gain, the longer-term effect is less reliable and weaker. For investors, this implies a potential opportunity to capitalize on short-term gains following KO earnings beats, but caution is warranted for holding beyond a few weeks as upside consistency diminishes.

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The backtest results reveal that when the Beverages Industry beats earnings expectations, there is a consistently positive impact on the sector with a maximum average return of 1.77% occurring around day 13 after the event. This positive response suggests that earnings beats serve as a reliable indicator for short-term gains within this industry. Consequently, investors may benefit from considering positions in Beverages stocks following earnings beats, leveraging the typical upward momentum that follows such positive surprises to optimize returns.

The backtest shows a positive market impact following Coca-Cola's earnings surprise, benefiting the Capital Markets sector with gains over 24 days. Conversely, the Distributors industry suffers a prolonged negative impact lasting 46 days. This divergence arises as Coca-Cola’s improved earnings boost investor confidence but may reduce reliance on third-party distribution. Overall, the results highlight a sector rotation effect triggered by the event.

This dynamic suggests investors should consider overweighting Capital Markets while being cautious on Distributors after a Coca-Cola earnings beat. Strategic positioning in response to such earnings surprises can enhance portfolio returns by capturing these sector-specific impacts.

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Backtest KO Earning Beats

Find all upcoming company earnings reports scheduled for jul 22 2025. Get details on which companies are reporting and their expected results.

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