@article {Billingsley1, author = {Randall S. Billingsley and Bruce G. Resnick}, editor = {Connett, Wendy}, title = {Practical Applications of A Trading Strategy to Profit from Overly Aggressive Downward Earnings Guidance}, volume = {1}, number = {4}, pages = {1--4}, year = {2014}, doi = {10.3905/pa.2014.1.4.046}, publisher = {Institutional Investor Journals Umbrella}, abstract = {A Trading Strategy to Profit from Overly Aggressive Downward Earnings Guidance Randall S. Billingsley Bruce G. Resnick It{\textquoteright}s commonly assumed that companies tend to issue earnings guidance below the expectations of analysts that follow them, so that actual earnings announcements result in a pop in their stock prices.{\textquotedblleft}Given this, it seems logical that firms would want to dampen analysts{\textquoteright} expectations. And if one could identify when analysts{\textquoteright} expectations had been aggressively guided downward, perhaps a trading strategy could be developed to capture the expected large pop in stock price when the large surprise becomes public knowledge,{\textquotedblright} Bruce Resnick , Professor at the Wake Forest University School of Business in Winston-Salem, NC, tells us.Resnick and his co-author set out to test this hypothesis. They detail their research in A Trading Strategy to Profit from Overly Aggressive Downward Earnings Guidance , in the Winter 2014 issue of The Journal of Portfolio Management . Resnick discusses actionable findings in this Practical Applications report.}, issn = {2329-0196}, URL = {https://pa.pm-research.com/content/1/4/1.10}, eprint = {https://pa.pm-research.com/content/1/4/1.10.full.pdf}, journal = {Practical Applications} }