Wall Street analysts wield enormous influence on investors even though most have only mediocre track records—in fact, more than half of their buy ratings generate negative returns in the one-year period after the recommendation.
Uri Gruenbaum, CEO of TipRanks, which analyzes the performances of nearly 8,000 Wall Street analysts, recommends that you follow the advice of only the best. How he rates them: When an analyst makes a stock recommendation, TipRanks tracks its performance for one year or until the analyst changes the rating. A recommendation is a “success” if it makes a profit over the course of the holding period. TipRanks measures the percentage of ratings that result in a positive return and the average return per rating. It also ranks analysts based on their performance. Analysts with top performance records over the past two years and their recent recommendations…
Jason Seidl, Cowen & Co. (Transportation Services). Success rate: 79%. Average return per transaction: 43%. Recent recos: Freight transportation and logistics provider Daseke (DSKE)…US railroad giant Norfolk Southern (NSC).
Mark Lipacis, Jefferies (Technology). Success rate: 71%. Average return per transaction: 64%. Recent recos: Advanced Micro Devices (AMD)…ON Semiconductor (ON).
Dan Payne, National Bank of Canada (Basic Materials). Success rate: 82%. Average return per transaction: 145%. Recent recos: Two Canadian oil-and-natural gas producers, Advantage Energy (AAVVF) and Tourmaline Oil (TOU).