RT Journal Article SR Electronic T1 A Requiem for SUE JF The Journal of Investing FD Institutional Investor Journals SP 11 OP 14 DO 10.3905/joi.2002.319519 VO 11 IS 4 A1 Edward F Keon, Jr A1 Jamie A. Coleton A1 Tara G. Stergis A1 Gloria Ramirez YR 2002 UL https://pm-research.com/content/11/4/11.abstract AB We believe that standardized unexpected earnings (SUE, a.k.a. earnings surprise) has lost its power as a stock selection tool. The concept of surprise, acting on new information that was not previously reflected in stock prices, may still have merit. But measuring results versus expectations just before the announcement has been fatally compromised in our view by manipulation of expectations and earnings—a phenomenon that was unwittingly unleashed by SUE herself. We believe that other quantitative factors offer better hope for positive performance in the future, including earnings estimate revisions, valuation-based factors, and measures of earnings quality.