“Best Analyst Covering” Tool
At TipRanks, we have developed a new tool called “Best Analyst Covering.” The point of the tool is to show our users which analyst covering a specific stock has given the most successful ratings on that stock.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Our rankings at TipRanks are based on the overall performance of an analyst across all the stocks they cover, as determined by the ratings they give to stocks and the subsequent returns on those ratings. Of course, an analyst may be more successful when covering some stocks, but less successful when covering others.
Our new “Best Analyst Covering” tool shows you which analyst made the best calls on a particular stock. We further break down the data by showing best analyst on a stock per time periods: one month, three months, one year, and two years.
How to Find the “Best Analyst Covering” Tool
On the TipRanks website, the tool can be found in the Analyst Forecast tab on our individual stock pages, just under the table of analyst forecasts.
On the TipRanks app, find the tool in the Analyst Forecast tab on any individual stock page. Scroll down past the Analyst Price Target and Analyst Consensus sections, and you will reach the Best Analyst Covering [Stock Ticker] section.
How Does it Work?
To understand how the tool works, consider the following analogy: Imagine you’re the coach of a basketball team and you need to make a crucial 3-point shot in order to win the game. Who would you choose to take the shot? LeBron James, the best overall basketball player, or Steph Curry, the best 3-point shooter? Similarly, when considering investing in a specific stock, such as Palantir Technologies (PLTR), wouldn’t you want to know who the best performing analyst is for that stock? Just as you would choose Steph Curry to take the 3-point shot, you can use our tool to identify the best analyst for the stock you’re interested in.
For example, let’s say that you have an investment or are considering investing in PLTR. The best analyst overall, out of all the analysts who have given ratings on PLTR, is 5-star analyst Weston Twigg. However, his rating is based on the ratings he has given to all stocks, not just Palantir Technologies (PLTR). Weston (the LeBron James in the analogy) boasts an overall success rate of 72% and an average return of 28.4% per rating.
However, when it comes to PLTR specifically, Weston Twigg has not performed nearly as well as he has overall. In fact, as of January 2023, he has a 0% success rate on his PLTR ratings, with an average return of -39.32% per rating.
In contrast, Tyler Radke (the Steph Curry in the analogy), a 2.3-star analyst, has a success rate of 100% on his 10/10 ratings for PLTR, with an average return of 44.85% per rating. Therefore, an investor who followed Radke’s recommendations on PLTR would have yielded a hefty return.
As you can see, the tool can help investors identify analysts with a strong track record of accurately predicting the performance of a specific stock, which can be valuable information when making investment decisions.
How to Use the “Best Analyst Covering” Tool
The tool allows you to see which analyst is best at covering a specific stock during four different holding periods: 1 month, 3 months, 1 year, and 2 years. This means that the performance you see in each of those options is the performance you could have seen in your personal portfolio, if you had bought the stock when the analyst gave a recommendation and then held it for the duration of one of the four periods.
The tool has two tabs:
- Most Accurate Analysts – this tab shows you the 4 analysts that have the best success rate on the stock for the four different holding periods, regardless of their average return.
- Most Profitable Analysts – this tab shows you the 4 analysts that have the best average return on the stock, regardless of their success rate.
Example:
If you are looking to buy PLTR stock and hold it for a duration of one month, and you want to maximize your profits even if it’s by a small margin, you should follow Kamil Mielczarek. For that specific timeframe, he has the best success rate out of all the analysts covering PLTR.
On the other hand, if you are looking to buy PLTR stock and hold it for a duration of one month, and you want to maximize your profits regardless of the success rate, you should follow Brent Thill. For that specific timeframe, he has the best average return out of all the analysts covering PLTR.
Conclusion
This new feature on TipRanks’ platform will certainly be useful for investors as they make informed decisions about their investments. Accessing important information about the performance of analysts on a stock will help investors identify trends and make more informed decisions.
We will continue to develop and improve this tool in order to provide the best possible experience for our users. If you have any questions or feedback, please don’t hesitate to contact us at support@tipranks.com. We are always happy to help boost your investing.
