When Wall Street analysts (seemingly) get it right

Their trade alerts outperform their usual buy/sell recommendations

John Rekenthaler 23 July, 2019 | 1:19AM

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Four professors wondered, “Are Analyst Trade Ideas Valuable?” To their pleasure--because null results don’t attract readers--they found the answer to be “Yes.” Wall Street’s stock-trade suggestions have indeed been insightful. Overall, Wall Street’s buy announcements outperformed the norm, by a significant and meaningful amount, while its sell reports trailed by an even larger amount.  

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John Rekenthaler

John Rekenthaler  John Rekenthaler is Vice President of Research for Morningstar.