Wall Street stock analysts are employed and deployed by brokers to put out investment opinions to the public. They publish their findings for anyone to see.
"How good can they really be? If they were actually good at picking stocks, wouldn't they just do that on their own and not publish their thoughts for any yutz to read?"
So yeah, that's a good question. We'll leave it there. The analyst community has a range of ratings on stocks and bonds. Sell, Buy. Or Strong Sell, Strong Buy. For some, they want to take market wrinkles out of the equation, so everything is relative to how well the market does (and for most on Wall Street, "market" means the S&P 500; in Silicon Valley, "market" is usually NASDAQ).
"Outperform" is another rating. It just means that, if a given stock is rated that way, the analyst believes that, in the next n quarters, the stock will appreciate in value better than the market.
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Finance: What is Alpha?11 Views
Finance allah shmoop what is alfa All right well you've
heard of the alfa dog the alfa male an alfa
bet soup investing alfa is good when you have a
lot of it If your index iii the set of
investment returns numbers you were being measured against was saying
the s and p five hundred and it went up
eleven percent last year and you ve a trading or
investing in stocks and maybe options and whatever other vehicles
you deployed like dead and you know leverage and you
were on lee up eight percent last year Well then
you had low alfa sorry just keeping it real You
actually destroyed value after all your hard work from that
year you could have done nothing I he just let
your money sick and an s and p five hundred
index fund played golf all day and night If you
you know had those glow in the dark ball thing
is and you would have done three hundred basis points
better than you did trying teo you know outsmart mr
market So hi alfa Good low alfa bad unlike your
depressing golf score ask sophie if you need some help 00:01:09.415 --> [endTime] Home