Overly Bullish Analysts

From the Harvard Business Review:

For the past quarter century, equity analysts’ earnings-growth estimates have been almost 100% too high. Their overoptimistic projections have generally ranged from 10% to 12% annually, compared with actual growth of 6% (excluding the spike in growth from 1998–2001), according to McKinsey research. Only in strong-growth years such as 2003 to 2006 did forecasts hit the mark.

Posted by Eddy Elfenbein on May 17th, 2010 at 4:41 pm

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