Smart Investing

The difference between passing grades and failing grades has been so significant over the past 20 years, why would you ever choose a stock without at least checking it first?

Measuring the quality of earnings relative to investor expectations creates a superior measure of the Post-earnings Announcement Drift (PEAD) and, quite simply, those companies with favorable earnings and low expectations consistently outperform the market. ... and those with high expectations and weaker results don't.