.png){kind=icon}
.png){kind=icon}
Return
Analyzing the analysts: When do recommendations add value?
.png){kind=icon}
OA
AI
DOI：10.1111/j.1540-6261.2004.00657.x.png)
.png){kind=icon}
.png){kind=icon}
Share.png){kind=icon}
Save
Abstract
En 中文
We show that analysts from sell-side firms generally recommend glamour (i.e., positive momentum, high growth, high volume, and relatively expensive) stocks. Naive adherence to these recommendations can be costly, because the level of the consensus recommendation adds value only among stocks with favorable quantitative characteristics (i.e., value stocks and positive momentum stocks). In fact, among stocks with unfavorable quantitative characteristics, higher consensus recommendations are associated with worse subsequent returns. In contrast, we find that the quarterly change in consensus recommendations is a robust return predictor that appears to contain information orthogonal to a large range of other predictive variables.
Keywords:
DISCRETE EXPECTATIONAL DATA
STOCK RETURNS
PORTFOLIO PERFORMANCE
FORECAST REVISIONS
COMMON-STOCKS
CROSS-SECTION
EARNINGS
INVESTMENT
STRATEGIES
ANOMALIES
AI Summary
Key information extracted from the uploaded paper, including a brief overview, abstract, background, key highlights, visual analysis, and future outlook.
Journal
IF:
9.5
Papers:
4.0K
Citations:
5.0W
Organization
No organization information available