Q1 2020 Top PEAD Winners

One of the best swing strategies on Wall Street is to buy stocks that gap up on earnings announcements. Why? Because stocks that gap up on strong earning reports tend to produce unusual returns due to a phenomenon known as the Post Earnings Announcement Drift (PEAD). The following list of stocks gapped up on strong Q1 2020 earning reports and produced substantial post-earning announcement drifts.

AA: Earnings Miss

Alcoa Corp. (AA) posted a fourth-quarter loss as sales fell 27%. With exposure to automotive manufacturers, makers of food cans and a host of other manufacturers, Alcoa is considered a bellwether. The company struggled in 2019 amid trade battles, weaker industrial activity in some markets and an expected slowdown in overall global economic growth.