Are Stock Recommendations Useful?

1741 Asset Management Research Note Series 4/2012

9 Pages Posted: 1 Dec 2012

Date Written: November 29, 2012

Abstract

Besides the positively biased rating structure and procyclical nature of analysts' stock recommendations we observe that within the global universe stock recommendations and stock performance are largely uncorrelated. Nevertheless, investors are able to benefit from sell side stock recommendations not by paying attention to recommendations themselves, but by focusing on recommendation revisions instead.

Keywords: analyst, analysts, rating, recommendation, revision, stock selection, quant, systematic, equities, small caps, large caps

JEL Classification: G00, G1, G10, G14, G15, G19

Suggested Citation

Stanislawek, Ireneus, Are Stock Recommendations Useful? (November 29, 2012). 1741 Asset Management Research Note Series 4/2012, Available at SSRN: https://ssrn.com/abstract=2182731 or http://dx.doi.org/10.2139/ssrn.2182731

Ireneus Stanislawek (Contact Author)

1741 Asset Management AG ( email )

Bahnhofstrasse 8
Zürich, 9001
Switzerland

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