Earnings Momentum

I dug out this old article, which reiterates the importance of Earnings Momentum. It says:

In a December 1997 issue of Barron's, a Merrill Lynch poll found that the top strategy among 122 institutions surveyed was to buy stocks of companies that exceed earnings expectations and sell the companies that fall short. Quarterly earnings reports are among the most powerful of the underlying fundamental factors that drive stock prices. In many cases, the magnitude of a stock's quarterly earnings surprise can be a short-term catalyst for the equity's performance.

Rest of it at this link....

http://www.schaeffersresearch.com/schaeffersu/options/expectational/fundamental/earnings.aspx