When making prudent investment decisions, investors look to experts for guidance. But, with several analysts rating thousands of stocks, it’s confusing to know which stock recommendations can be trusted. At this point, we provide you with the TipRanks Top Research Firms tool that allows investors to track the ranking and overall performance of the leading Wall Street research firms.
This tool ranks research firms based on several parameters, including success rate, average return, and statistical significance of analysts’ ratings since 2009. Further, the tool only considers analysts who have published a rating in the past year. (For a deeper explanation of this tool, please click here.)
Let’s take a closer look at Wall Street’s best-performing firms when benchmarked against the S&P 500 over a one-year period.
McAdams Wright
Investment research and brokerage firm McAdams Wright has a success rate of 80% and an average return of 19.1% on close to 25 ratings by four analysts when compared to the S&P. The firm’s most profitable sector is Consumer Goods.
Autonomous Research
Global financial sector research firm, Autonomous Research, comes in second place with a 7.2% average return above the S&P and a 63% success rate. Its eight analysts have assigned about 122 recommendations. Investors can follow the team for recommendations on Financial sector stocks.
Brian Foran is one of Autonomous Research’s top analysts. When compared to the S&P, Foran has a 61% success rate and an average return of 6.5%.
Keefe, Bruyette & Woods (KBW)
KBW is a full-service investment bank and broker-dealer. KBW’s team of 68 analysts has issued 3,830 stock recommendations. The firm boasts a success rate of 66% and an average return of 12.1% above the S&P 500. Also, KBW has been most successful at recommending Service sector stocks.
One of KBW’s five-star-ranked analysts, Bose George, has a 61% success rate and an average return of 6.8% when compared to the S&P. With a focus on the Financial sector, his most recent activity includes assigning a Buy rating for Radian Group (NYSE:RDN) and a Hold rating for NMI Holdings (NASDAQ:NMIH).
Concluding Thoughts
An investment research firm performs thorough analysis before issuing recommendations. Interestingly, our tool helps investors shortlist the very best among these firms. For more ideas on our Top Expert Picks, you can visit the TipRanks Expert Center.
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