Whether stock prices are realistically related to analysts' earnings growth forecasts is often discussed. This monograph provides new evidence to fuel the debate.
Whether stock prices are realistically related to analysts' earnings growth forecasts is often discussed. This monograph provides new evidence to fuel the debate. It concludes that contrarian strategies seem to work, and the author demonstrates what growth valuation models suggest—that abnormal performance trends to grow with the horizon over which earnings per share are forecasted.