MeanRankRevGrowth · Sales growth · Lakonishok, Shleifer, Vishny (1994)

Revenue Growth Rank

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1957Q3 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
2.51%
95% interval −0.67% to 5.75%
Next year
2026Q4–2027Q3
2.48%
95% interval −0.79% to 5.81%
Next five years
2026Q4–2031Q3
2.38%
95% interval −1.29% to 6.01%

Forecast made 16 Sep 2026, conditioning on this portfolio's OAP returns, which end 2024Q4. The 7 quarters between then and 2026Q4 are unobserved and are integrated out under the model.

Cumulative market-adjusted return

+325% since 1957Q3 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1957Q3–2024Q4 2.98% 12.93% 0.23 1.89
2020Q1–2024Q4 1.29% 8.69% 0.15 0.33
2024Q1–2024Q4 7.17% 9.13% 0.78 0.78

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.19 −0.05 – 0.45 0.06
2026Q4–2027Q3 0.18 −0.06 – 0.42 0.07
2026Q4–2031Q3 0.14 −0.07 – 0.37 0.10
Category
Sales growth
Form
Continuous
Data
Accounting
Sorted on
High minus low
Names per leg
150 long / 152 short median · 39 at the 10th pctile
Original sample
1968–1990