One or two quarters after such earnings calls, stocks of the companies have tended to fall on negative news, a study found.

Cheryl Winokur Munk

Beware of companies that disproportionately call on bullish analysts to speak during earnings conference calls. They tend to later reveal negative news that drives down their share price.

That correlation—detailed in a recent study—can be valuable for investors, says Lauren Cohen, the L.E. Simmons professor in the finance and entrepreneurial management units at Harvard Business School, who co-wrote the study.

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