Revision Momentum Confirmation
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.
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 drift is stronger when the post-announcement price move aligns with the earnings surprise direction.
Stocks where earnings surprises are accelerating quarter-over-quarter while price is trending up show compounding drift.
Explore Revision Momentum Confirmation on alphactor.ai
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