Trends/Relative strength, cycles and structure

Earnings run-up

The stock's average return in the days before past earnings reports.

Relative strength, cycles and structureBest on 3Y, 5YAlso called pre-earnings drift
Earnings run-up diagramIllustration of the earnings run-up shape. It is a sketch, not real price data.Report
Illustration of the earnings run-up shape. It is a sketch, not real price data.

What it shows

Some stocks have tended to move in the days before they report earnings. This view takes the last 12 earnings dates and shows the average cumulative return from 10 days before to the day of the report.

It describes the stock's history. Earnings results can move a stock in either direction.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

  1. Collect past earnings dates.
  2. For each, compute the return from day −10 to day 0.
  3. Average the paths.
  4. Plot the average path and the spread.

Starting values: Window 10 days before; Reports last 12. These are proposed and will be tuned on real price data before launch.

How to read it

  • The line is the average path.
  • Day 0 is the report.
  • The band shows the spread across reports.

Status labels you may see

LabelWhat it means
Usually upPositive in 70% or more of reports.
Usually downPositive in 30% or fewer.
MixedIn between.

What cancels it

Nothing cancels it.

What traders check next

  • Spread across reports.
  • Market moves in the same days.
  • Surprise sizes.

Limits

  • Only 12 reports.
  • Averages hide wide variation.
  • Dates shift.

Try it in forecastviz

  • Open any ticker and choose Relative strength, cycles and structure → Earnings run-up in the left menu.
  • Switch between 3Y, 5Y to see how the picture changes.
  • Compare with Monthly seasonality and Volume spike on the same chart.

Questions

Does it predict earnings?

No claim.

Why show it?

To see how this stock has behaved before.

Related trends

Further reading

  • O'Neil, How to Make Money in Stocks
  • Levy, The Relative Strength Concept of Common Stock Forecasting
  • Pring, Technical Analysis Explained
  • Frost and Prechter, Elliott Wave Principle
  • Hank Pruden, The Three Skills of Top Trading
  • Hirsch, Stock Trader's Almanac

Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.