Second quarter results for the Digital Revenue Signal (DRS) are in, and as with previous quarters, stocks with high rankings consistently beat revenue expectations whereas those with low rankings consistently missed. DRS is a new quantitative stock selection model designed to predict the likelihood of a company beating revenue expectations based on trends in online consumer demand from web Site, Search, and Social data sources.
In line with historical averages, 70% of top-ranked stocks according to DRS beat expectations, versus only 36% of bottom-ranked stocks, as the headline chart shows. Top ranked stocks experienced an average surprise magnitude of +2.2%, versus a 3.1% average shortfall for bottom-ranked stocks. Both of these metrics are closely in line with last quarter and prior quarters.
See a full report with examples here.