A Complete Guide to Equity Research – Part 3

Equity Analysts Part 3: Trading Strategies with Analyst Forecasts In this third part of our series on equity analysts, we are going to explore a series of trading strategies that are made possible thanks to quantifying analyst forecasts. By the end of this article, readers will be more acquainted with the following subjects: How to quantify analyst forecasts; What are earnings surprises; How to form profitable trading portfolios with earnings surprises. Analyst Forecast Errors Analysts issue several different types of forecasts related to both company performance and accounting metrics. However, the most common forecast that analysts provide is the earnings…...