Question: If an equity analyst can correctly and consistently predict whether a company will surprise positively or negatively, why is it still challenging to guarantee making
If an equity analyst can correctly and consistently predict
whether a company will surprise positively or negatively,
why is it still challenging to guarantee making money for
clients each quarter?
Because there are many additional factors to consider that influence stock
price movements.
Because only positive, surprises influence company stock pricemovements.
Because consensustestingates are alwaysinaccurate and not followed by
market parficipants.
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