Factor based investing earnings season data shows factor based

Earnings season data shows factor based investing models prioritizing earnings surprise factors are benefiting. Companies beating EPS estimates by 15%+ had a median post-earnings pop of 6.4%, adding alpha to tactical allocation portfolios. Now, it’s worth noting Stock Advisor’s total average return is 1,058 % — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor . The authors examined a deceptively simple yet profound concept: crowdedness in equity markets. Unlike traditional risk factors that focus on company fundamentals or market characteristics, crowdedness represents a demand-side phenomenon—it’s about who’s buying what, and how much. Latest market data shows factor based investing strategies outperforming the S&P 500 in Q2 2024, with momentum and low volatility factors delivering a 4.3% average monthly gain. Analysts attribute this to tech earnings beats and steady consumer spending data. Short-term forecasts suggest continuing outperformance if macroeconomic indicators remain stable.