FYI: Wall Street analysts — the people that make all those buy/sell/hold recommendations — take a lot of heat. Over the years, investors have become more and more skeptical of analyst calls, which these days are viewed more as lagging indicators than anything else by the self-proclaimed “smart money.”
For whatever reason, though, analysts have been right on the money so far in 2017. In the chart below, we’ve broken up the S&P 500 into deciles (10 groups of 50 stocks each) based on a stock’s consensus analyst recommendation at the start of the year. Decile 1 all the way to the left of the chart contains the 50 stocks that were most loved by analysts at the start of 2017. Decile 2 contains the next 50 most loved stocks, and so on and so forth until you get to decile 10, which contains the 50 stocks that were the least loved — or most hated — by analysts at the start of the year. For each decile, we’ve calculated the average year-to-date percentage change of the 50 stocks.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/wall-street-strategists-winning-in-2017/
