Efficient market theory implies that with so many educated, intelligent, rational analysts and investors studying the prospects for any given company, how can its shares possibly be mispriced?
According to something called efficient market theory, while individual traders might make bad decisions, the market as a collective takes all future activities into account.
So that really is more of an anomaly because the efficient market theory would say that new information when it exists is immediately compounded in the stock price.
This concept is known as the efficient market theory and it's a reason why consensus earnings play such an important part in the near term price movement of a stock.
