A momentum screen based on buying stocks with rising analyst earnings estimate revisions in light of empirical findings that stocks with their estimates revised often outperform the market over at least the next 12 months.
Although investing on the basis of broker recommendations alone does not appear to be a successful strategy because of the bias in those recommendations, research suggests that focusing on recent changes in broker recommendations is more fruitful, particularly in combination with other signals.
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This shows the percentage EPS upgrade of consensus broker forecasts for FY2 over the past month.
FY2 means the next forecast year after this one. If we are in March, it would usually be the year ended the December after next December. It does however depends when the company's year-end is, i.e. they do not always end in December (this is not the case with a rolling ratio which is normalised for different year-ends).
Stockopedia explains % 1m EPS Upgrade FY2...
Research has shown that analysts forecasts have a tendency to trend. Analysts often get 'anchored' to their previous forecasts and only ratchet forecasts up or down cautiously in reaction to new events.