The backtest results show that UNP exhibits a 75% win rate at both 3 and 10 days post-earnings beat, though this declines to 62.5% at 30 days, with average returns increasing from 1.14% (3-day) to 2.55% (30-day). The maximum observed return is 1.08% occurring about two weeks after the event. This indicates a reliably positive price reaction following earnings beats, especially in the short to medium term. Investors might consider a holding strategy for up to 30 days post-UNP earnings beat to capture potential gains.

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The backtest reveals that stocks in the Ground Transportation Industry generally see positive returns following an earnings beat, with a maximum observed return of 2.56% achieved around 14 days after the event. This consistent positive impact suggests a measurable market appreciation for strong earnings performance within the sector.

The results imply that earnings beats serve as a credible signal of industry strength, boosting investor confidence and stock prices. This pattern indicates moderate but reliable gains tied specifically to earnings surprises.

Investors might benefit from monitoring earnings beats in this sector as a signal to consider entering or maintaining positions for short-to-medium term gains.

The backtest results show a positive market impact from Union Pacific's earnings beat, with Industrial Conglomerates experiencing a significant rally lasting 21 days, while Energy Equipment and Services faced prolonged declines over 46 days. This divergence stems from increased freight demand boosting infrastructure-related sectors, whereas shifting energy consumption patterns suppress energy service prospects. The data suggests a clear sector rotation following the event.

This outcome highlights the importance of monitoring indirect sector effects beyond the company itself, revealing how earnings surprises can reshape capital flows. Investors might consider overweighting Industrial Conglomerates while reducing exposure to Energy Equipment and Services after such reports.

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Backtest UNP Earnings Beat Expectations

Find all upcoming company earnings reports scheduled for jul 24 2025. Get details on which companies are reporting and their expected results.

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