ARC’s have increased for the third week in a row as the market adjusts to a higher, longer interest rate environment. This follows five weeks of consecutive declines.

Persistent or recurring underperformance could point to deeper issues within a company. Chronic under-performance may indicate fundamental challenges like weak demand, operational inefficiencies, or strategic missteps. In these instances, investors may view the earnings as a symptom of a more significant problem.

Read our recent article for guidance on identifying “misses” or below-budget performance.