Investing 101 !

Financial Analysts from banks and research houses cover companies and the evolution of their business. In this process, they issue estimates about the EPS and Sales of a company for the next 12 months, and these can be compared with the realized metrics for the company for the past 12 months to gauge what kind of growth the analyst community is expecting for the stock.

Analyst Expected Growth helps gauge the views of the analyst community on the growth potential for the stock. This can either have predictive power or - as sometimes happens - be more of a contrarian indicator: in some cases, when all analysts are one-sided on the trade, it’s a sign to do the opposite.

Discounted cash flows, an absolute valuation method, rely on growth expectations to predict future cash flows and hence potential stock prices. Investors can use analyst expected growth as a benchmark for their own growth expectations.

Analyst Expected Growth 

Fundamental Valuation Indicators

Financial Analysts from banks and research houses cover companies and the evolution of their business. In this process, they issue estimates about the EPS and Sales of a company, and often about other measures as well: dividends, cash flow, ebitda etc.

The Analyst Revision Bias measures how many analysts have reviewed their estimates up or down in the last month. A reading of +100% means that all analysts have increased their estimates, a reading of -75% means most analysts have decreased them.

Analyst revisions help gauge consensus and understand whether the research community for this stock actually has predictive power or - as sometimes happens - is more of a contrarian indicator: in some cases, when all analysts are one-sided on the trade, it’s a sign to do the opposite.

Analyst Revisions Bias

Analyst Expected Growth