IDEAS systematic research brings together fundamental, valuation and behavioural factors to give investors a unique perspective that helps to identify share price potential and risk. While designed to be used in conjunction with other factors, our main behavioural factor, Estimates Momentum in EPS, exhibits individual outperformance across regions.

This note focuses on short-term timing signals generated when screening stocks with recent price performance that contradicts the direction of Estimates Momentum. We highlight long/short back test results and conclude that these signals call due attention to stocks over the short term.