Fiserv’s Only Bear Is a 26-Year-Old Analyst Who Beat Wall Street
https://finance.yahoo.com/news/fiserv-only-bear-26-old-214013951.html
Fiserv’s blowup is the latest event to shine a light on an oft-cited bug in Wall Street’s research machine: The overly optimistic analysis often produced by the people charged with keeping investors abreast of companies’ strengths and weaknesses. Data compiled by Bloomberg show that only 5% of the ratings on S&P 500 companies are “sells.”
An extreme example of the trend came earlier this year, when shares of insurance giant UnitedHealth Group Inc — which sported a “buy” ratio of 97% — nosedived after the company slashed its annual forecast, replaced its chief executive officer and disclosed it is facing civil and criminal investigations over its businesses from the Justice Department.
https://finance.yahoo.com/news/fiserv-only-bear-26-old-214013951.html
Fiserv’s blowup is the latest event to shine a light on an oft-cited bug in Wall Street’s research machine: The overly optimistic analysis often produced by the people charged with keeping investors abreast of companies’ strengths and weaknesses. Data compiled by Bloomberg show that only 5% of the ratings on S&P 500 companies are “sells.”
An extreme example of the trend came earlier this year, when shares of insurance giant UnitedHealth Group Inc — which sported a “buy” ratio of 97% — nosedived after the company slashed its annual forecast, replaced its chief executive officer and disclosed it is facing civil and criminal investigations over its businesses from the Justice Department.