Otos Surprise Strategy
Otos Surprise Strategy

The “Earnings Surprise” Strategy

We design stock portfolio investing strategies to fulfill on the preferences of our strategists.

The Earnings Surprise Strategy is created to exploit the earnings surprise pattern in fundamental data. The components of the surprise pattern are rising sales growth, higher gross profit margins, high and falling SG&A expenses, lower financing costs and positive and rising cash flow returns. This pattern repeats itself frequently not only across companies but also within the company record as economic cycles and product cycles affect growth.

The surprise pattern measures an accelerating company. This accelerating phase of the company growth cycle is when the company produces a series of positive earnings surprises and often when the shares produce superior returns.
Depressed share price is also an important component of the Earnings Surprise Model strategy. The surprise pattern is not a predictor of the future but rather a measure of the current evident trend. That trend can reverse, even in the short term, and the depressed share price discipline helps limit the downside risk.
Our investment strategy service empowers you make stock selection choices within your investing strategy or population and generates trade recommendations over time.

We monitor the characteristics of the portfolio and keep you informed. We maintain a report on the current Earnings Surprise portfolio and keep OTOS members informed. If an OTOS premium member chooses to monitor or implement your strategy, you get paid!

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