Company Events & EarningsExtended setexperimental liveNew

Revision Momentum Confirmation

Updated dailyData needs: mediumlong onlylong short

1996

Chan-Jegadeesh-Lakonishok 1996 JF -- Momentum and Earnings Surprise.

In plain terms

When both analyst estimate revisions and price momentum point the same direction, the combined drift is more reliable than either signal alone.

How it works

Analyst earnings revisions in the same direction as recent price momentum reinforce each other. Stocks where both the revision trend and price trend agree produce stronger and more persistent drift than either signal alone.

Live results

1 times picked on its own · 17 times inside a blend (14 beat the stock) · updated 2026-07-06

This strategy is a frequent ingredient in blends that combine a few strategies on one stock. It has contributed to 17 such blended picks (14 of which beat simply holding the stock). Picking it on its own is only one of the ways it shows up.

How its picks scored vs. buy & hold

Each pick is graded on a recent year it was never tuned on, against simply owning the same stock

Where its edge concentrates

Share of picks in each company-size group that beat buy & hold

How often it trades

Active vs. patient. Bars on the left mean it waits for rare setups; bars on the right mean it trades often

Return vs. buy & hold

How much each pick beat or trailed simply owning the stock over the test year (extreme microcap moves trimmed)

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Data dependencies

Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
Earnings history
A data feed this strategy reads, refreshed on its normal schedule.

Expected edge

Reported return: ~4-8% annual in combined signal
Tested over: 1977-1993 (Chan-Jegadeesh-Lakonishok)

Revision + price momentum confirmation reduces false positives from each signal alone; combined drift estimate 3-8% over 3-6 months.

Related families

Pead Price Trend ConfirmationCompany Events & Earnings

PEAD drift is stronger when the post-announcement price move aligns with the earnings surprise direction.

Surprise Acceleration RsCompany Events & Earnings

Stocks where earnings surprises are accelerating quarter-over-quarter while price is trending up show compounding drift.

Explore Revision Momentum Confirmation on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

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