RT Journal Article
SR Electronic
T1 Analyst Incentives and the Financial Characteristics of Wall Street Darlings and Dogs
JF The Journal of Investing
FD Institutional Investor Journals
SP 23
OP 32
DO 10.3905/joi.2007.694759
VO 16
IS 3
A1 Scott E. Stickel
YR 2007
UL https://pm-research.com/content/16/3/23.abstract
AB Wall Street darlings, stocks with consensus strong buy recommendations, tend to be stocks with recent positive EPS momentum and surprise, recent positive relative price momentum, and recent positive EPS forecast revisions. Darlings also have stronger balance sheets, in the sense of lower debt, and tend to have lower dividend yields. Finally, darlings also tend to have higher long-term EPS growth forecasts and lower book-to-market ratios. Wall Street dogs, stocks with consensus hold and sell recommendations, tend to have the opposite characteristics.TOPICS: Equity portfolio management, security analysis and valuation, portfolio construction