Do Stars Shine? Comparing the Performance Persistence of Star Sell-Side Analysts Listed by Institutional Investor, the Wall Street Journal, and StarMine
研究了四种明星分析师评选榜单（《机构投资者》、StarMine的“最佳盈利预测者”和“最佳选股者”、《华尔街日报》）推荐盈利的持续性，发现只有买入和强力买入推荐在一年后优于非明星分析师，而StarMine“最佳盈利预测者”的长期多空组合月均异常收益最高达0.97%。
We investigate the profitability persistence of the investment recommendations from analysts listed in four different star rankings, Institutional Investor magazine, StarMine’s “Top Earnings Estimators” and “Top Stock Pickers”, and The Wall Street Journal , and show the predictive power of each evaluation methodology. We found that only Buy and Strong Buy recommendations from the entire group of Star analysts outperform those of the Non-Stars in the year after election, while Sell and Strong Sell recommendations performed as those of the Non-Stars. We document that the highest average monthly abnormal return of holding a long-short portfolio, 0.97 %, is obtained by following the recommendations of the group of star sell-side analysts rated by StarMine’s “Top Earnings Estimators” during the period from 2003 to 2014. Since earnings are one of the main drivers of stock prices, the results obtained are in line with the notion that focusing on superior earnings forecasts is one of the top requirements for successful stock picks.