Companies with stable earnings growth are usually valued higher in the stock market, while those with erratic or declining earnings are valued lower. A study on Malaysian companies found that those with smooth earnings growth in the past tend to have slower earnings growth in the next year. On the other hand, companies with significant past earnings declines tend to bounce back and show faster growth in the following year. This suggests that companies with consistent historical earnings trends are more likely to surprise investors with negative or positive earnings in the future.