Extracting Information from European Analyst Forecasts

Journal of Asset Management, Vol. 8, No. 4, 2007

Posted: 1 Apr 2009

Date Written: December 31, 2007

Abstract

The impact of analyst forecasts is undeniable. However, previous research on analyst factors, yield either event strategies that are unimplementable or earnings consensus strategies that are no longer effective. Building upon research contending that stocks with high dispersion of earnings yield lower subsequent returns, I examine earnings in conjunction with recommendations and price targets in the European market. Specifically, I test commonly used consensus and dispersion signals as well as a previously untested revision measure. My results suggest that investors designing an analyst trading strategy should look beyond earnings alone and include measures other than simple consensus.

Keywords: Earnings forecasts, Security analysts, Europe

JEL Classification: G14, G15

Suggested Citation

Au, Andrea S., Extracting Information from European Analyst Forecasts (December 31, 2007). Journal of Asset Management, Vol. 8, No. 4, 2007, Available at SSRN: https://ssrn.com/abstract=1371232

Andrea S. Au (Contact Author)

State Street Corporation ( email )

State Street Financial Center
1 Lincoln Street
Boston, MA 02111
United States

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