UpRecomm · Earnings forecast · Barber et al. (2001)

Up Forecast

Long minus short portfolio using the original paper's sort and weighting, market-adjusted. Quarterly, 1994Q1 to 2024Q4.

Expected return · posterior mean, % per quarter
Next quarter
0.77%
95% interval 0.52% to 1.02%
Next year
0.74%
95% interval 0.44% to 1.04%
Next five years
0.64%
95% interval 0.19% to 1.09%

OAP publishes no uniform quintile or decile portfolios for this signal, so only the paper's original portfolio convention is shown.

Cumulative market-adjusted return

+264% since 1994Q1 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1994Q1–2024Q4 4.28% 4.10% 1.04 5.80
2020Q1–2024Q4 2.93% 6.11% 0.48 1.07
2024Q1–2024Q4 4.42% 2.32% 1.91 1.91

Forecast Sharpe ratio, per quarter

Horizon Mean 95% interval P(neg)
Next quarter 0.382 0.258 – 0.506 0.00
Next year 0.363 0.219 – 0.510 0.00
Next five years 0.313 0.093 – 0.529 0.00
Category
Earnings forecast
Form
Discrete
Data
Analyst
Predicted sign
Positive
Original sample
1985–1997