Earnings Revision Strategy

By: Big Macs
Emily Hansen | Jacob Winters

The “Earnings Revision Strategy” write-up by Group D, Big Macs, presents a forward-looking investment approach that selects stocks based on positive revisions to current year EPS forecasts and strong analyst recommendations. Employing backtesting with Bloomberg over a decade, the strategy aims to significantly outperform the SPY by reallocating $100k from SPY holdings into a diversified portfolio of ten carefully chosen stocks across various sectors. This methodology is projected to yield higher returns with an acceptable increase in portfolio risk, positioning it as an attractive strategy for the Student Investment Fund in 2024.!