When a "Whisper" Becomes a Scream

hu86390216

一年要钱不少，这个谁有订过？值得否？

The Discovery of These "Whispers"

What finally got us on the right track was going back to the basics of the earnings estimate philosophy at the heart of the Zacks Rank. Here are the clues:

• Earnings estimates come from brokerage firm stock analysts.

• These analysts are highly motivated to create conservative estimates that can easily be beat. Why? If they have a Buy rating on a stock, and the estimates are too high, then the stock is more likely to disappoint. This would send the stock price lower and the performance on their stock ratings would be poor (leading to lower compensation).

• The closer to earnings season we get, the more accurate the information that goes into the estimate.

Add it all up and there is no good reason for an analyst to create a higher estimate close to the date of the earnings report unless they had a DAMN GOOD REASON. Focusing in on those estimates closest to the earnings announcement is where we found the "whisper that becomes a scream" ...a clear indication from the analyst community of stocks more likely to beat earnings by a wide margin. And most importantly, rise on that news.

n748

It's just a game. So-called beating the wisper number.
It's busshit but it works for WS.