Here are several full research papers and detailed studies focusing on the effectiveness, distribution, and performance of stock "buy," "hold," and "sell" ratings. Key Research Papers on Stock Ratings
Statistically rare; often carries "scarcity value" and can have a larger market impact. Summary of Performance Findings stock buy sell ratings
: On average, recommendations do not impose significant "abnormal returns" during the event window, suggesting markets are relatively efficient. Here are several full research papers and detailed
: Analyzes the distribution of ratings and whether they can predict profitability. : Analyzes the distribution of ratings and whether
Analyst believes the stock should be sold or will underperform.
: Both ratings and earnings forecasts contain incremental value and are often more accurate than management's own forecasts. Understanding Rating Distributions
: An event study of 313 recommendations issued between 2018–2020 on the OMXS30.
