Analyst Ratings
Summary:
Seeking Alpha Strong Buy Aggregate Analyst Ratings without a Wall St. Rating returned …
Seeking Alpha Strong Buy Aggregate Analyst Ratings returned …
S&P 500 Returned …
Wall Street Strong Buy Ratings returned …
Why do Seeking Alpha Analyst Aggregate Strong Buy Ratings Outperform?
Seeking Alpha’s community of Analysts is a diverse group of investors who are combing through markets looking for the most attractive investment opportunities.
Seeking Alpha Analysts provide ratings on over 1,300 securities that Wall Street Analysts do not cover.
Our Analyst community publishes, on average, 123 new pieces of research per day. Each piece of research is rigorously edited by our in-house editorial team before being published on our platform.
Unlike Wall Street analysts whose ratings can be biased by management, clients, or a variety of other factors, our analysts simply have the goal of identifying investment opportunities they believe have the greatest chance of outperforming the market.
Since we began tracking Strong Buys, our Aggregate Analyst Ratings have delivered significant outperformance over both stocks rated as Strong Buy (or equivalent) by Wall Street and the S&P 500.
FAQs
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The aggregate analyst score is the simple average of all ratings on a single stock.
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New ratings are added to the aggregate analyst score any time a new rating is created by an author who is not already in the aggregate score. Analyst ratings will stay valid for 90 days if there are less than 10 ratings, and if there are 10 or more ratings analyst ratings will stay valid for only 30 days.
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There have been several empirical studies, including one which used seeking alpha data, that suggested that crowdsourced investment research is a meaningful source of alpha.
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Empirical evidence suggests Analysts may issue biased recommendations to market a stock, appease management or avoid frustrating clients who hold shares, or they may simply lack skill. Analysts tend to chase so-called glamour stocks.
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Seeking Alpha Analyst Aggregate Strong Buys are generally composed of smaller companies relative to Wall St. Strong buys or the S&P 500.
In a recent interview, David Einhorn said the following when asked about earnings calls:
“It used to be institutional investors would ask questions. Sometimes individuals would ask questions, and that's pretty rare these days. Now it's mostly just sell-side analysts...The number of professionals that are paying attention to mid- and small companies that are not in the sexiest areas of the market, I think it has to be down by some big percentage, but I can't prove that"
Our Analysts are looking for opportunities in these areas of the market and thus providing outsized returns for SA subscribers.
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Stocks are purchased when they receive an aggregate analyst rating of Strong Buy and sold when their rating drops below Strong Buy.
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The Aggregate Analyst score is located on the right side of symbol pages within the Ratings Summary card or in the Ratings tab.
Disclaimer: Past performance is no guarantee of future results.
*Past performance is no guarantee of future results. Therefore, you should not assume that the future performance of any specific investment or investment strategy will be profitable or equal to corresponding past performance levels. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. Seeking Alpha is not a fiduciary by virtue of any person’s use of or access to the website. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of the information on the website before making any decisions based on such information or other content. Any views or opinions expressed may not reflect those of the firm as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.