How do you measure the dispersion of analysts estimates

Discussion in 'Trading' started by TheBigShort, Jul 16, 2018.

  1. newwurldmn

    newwurldmn

    Yes. Plus there is a gamesmanship analysts play. They aren’t in it to be accurate as much as to market their “insights” and some might be prone to create outrageous forecasts to get noticed.
     
    #21     Jul 21, 2018
    sle likes this.
  2. Good question. Higher volatility of what? Stock price reaction to earnings or earnings surprise? And how do you normalize surprise? Usual (actual - estimate) / estimate leads tp instability when estimate is at or near zero. Normalize by revenues?, share price?, avg $volume?
     
    #22     Jul 21, 2018
    destriero likes this.
  3. TheBigShort

    TheBigShort

    hmm this has me thinking. Some companies (with low earnings) usually move on the revenue surprise, not the earnings and therefor should be grouped by the dispersion of the revneue estimates and not the earnings. Ill share with this group my findings once I get back from the cottage
     
    #23     Jul 21, 2018