Stocks with 'breakout earnings' (sales > 50% YoY, profits/earnings > 300-400% YoY) will eventually be revalued to their much higher intrinsic value, despite a slow initial market adjustment.
"the stock market is very slow to adjust the stock price to the right intrinsic value immediately so you get what is known as a post earnings announcement drift... the intrinsic value actually is much much higher but the stock market takes its own sweet time to revalue the stock to the right high level"
