What is an analyst?
An analyst is a financial expert who has knowledge in evaluating investments and publishes buy, sell and hold recommendations for publicly traded stocks and ETFs. An analyst is often employed by a brokerage firm, investment adviser or mutual fund. With a combination of experience and expert market knowledge, they make a thorough analysis on which they base their recommendation.
How can we track analysts?
Access to analyst reports is often restricted to a subscription or membership with either a brokerage firm, investment advisor or other type of financial service. Most brokerage firms will give you access to a set of analyst reports for free as part of their service offering. There are also independent research firms which offer analyst reports on a paid subscription or one-time basis.
Why track analysts?
The recommendation published by an analyst is the result of years of business experience and a very thorough analysis of both the market and the outlook for the specific company being analyzed. Analysts typically cover a few stocks each within the same sector and industry, which means they will spend more time than anyone else determining different factors which would make a shares price go up or down.
Even though it´s impossible to determine the future price of stock with 100% accuracy, analysts with their experience and business expertise are those who are best qualified to do so.
How can you benefit from tracking analysts?
Looking at analyst recommendations can provide you with additional insight and provide further confirmation on an investment decision. Some of the bigger companies are covered by multiple analysts from multiple different brokerage forms, to take analyst recommendations one step further you can look at the consensus rating spanning multiple analysts and brokers.
If multiple analysts provide the same recommendation this give the recommendation a much higher significance. At the same time of multiple brokers provide recommendations in different directions it shows an underlying uncertainty and neither of the recommendations should be considered significant.
How do you know which analysts to follow?
KINFO tracks analyst recommendations from 2600 analyst covering a large number of stocks. If you are currently invested in a stock, you could follow analysts who have a history of providing recommendations for the stock you are invested in. In the analyst’s view for each stock you will also get a holistic view of analyst ratings over time, this will give you a sense of the consensus recommendation spanning multiple analysts and broker.