search query: @author Berry, M. / total: 17
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| Author: | Dreman, D. Berry, M. |
| Title: | Overreaction, underreaction, and the low-P/E effect |
| Journal: | Financial Analysts' Journal
1995 : JUL/AUG, VOL. 51:4, p. 21-30 |
| Index terms: | STRATEGY MARKETS STOCK RETURNS |
| Language: | eng |
| Abstract: | Positive and negative earnings surprises affect "best" (high-P/E) and "worst" (low-P/E) stocks in an asymmetric manner favoring worst stocks. Long-term "reversion to the mean", in which worst stocks display above-market returns while best stocks show below-market results, regardless of the sign of the surprise, continues for at least 19 quarters following the news. The mispricing-correction hypothesis can explain the superior returns of contrarian strategies. |
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