Backtest
The backtest reveals that when companies in the Professional Services industry beat earnings expectations, the price impact is minimal, with a peak return of only 1% after 14 days. Conversely, earnings misses in the same industry also yield no substantial price reaction, showing a maximum return of 2.91% after 55 days.
This pattern suggests that earnings events for Professional Services companies, whether positive or negative, do not significantly influence short- or medium-term stock performance.
For investors, this highlights the importance of seeking additional catalysts beyond earnings reports when evaluating opportunities in this sector.
