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> Anyway, at that time, Navellier's objective, statistical analysis showed
> that "sponsorship" in the form of broker recommendations, and earnings
> estimate upgrades, were among the most important fundamental factors shared
> by the best performing stocks during the last six months. This could
> change, but for right now, it suggests that buying on
> upgrades/recommendations is not a bad approach. Of course, if you are
> prescient, you could get in before a series of upgrades/recommendations.
> I'm not. <g>
>
Actually, the use of analysts estimate changes is part of the Zack's
methodology also. If you wait until brokerage firms actually issue an
upgrade, you will probably be able to see that they have been already
moving the earnings estimates higher. The other possibility is earnings
surprise. There is a good correlation between earnings surprise and 3-6
month performance.
--
Regards,
Dave Zawicki
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