Are Stock Recommendations Useful?
1741 Asset Management Research Note Series 4/2012
9 Pages Posted: 1 Dec 2012
Date Written: November 29, 2012
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: Suggested Citation