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Buffalo Manufacturing has just announced earnings that are 3% higher than analysts’ forecasts. Panda Technologies has just announced earnings that are 4% less than analysts’ forecasts. According to the representative heuristic description of investor behavior, what is the most likely future performance of each stock as they revert to their intrinsic values? A. Both Buffalo Manufacturing stock and Panda Technologies stock will outperform in the future. B. Buffalo Manufacturing stock will underperform in the future while Panda Technologies stock will outperform in the future. C. Buffalo Manufacturing stock will outperform in the future while Panda Technologies stock will underperform in the future. |