Measure by measure

How can the skill of analysts, who provide forecasts of corporate earnings, be accurately measured?

In recent years, the quality of sell side research has been called into question with particular scrutiny directed at stock ratings and price targets published by brokerage houses. However, forecasts of earnings estimates have been largely ignored during these proceedings.

As measures of valuation and of changes in the corporate earnings outlook they are generally of more interest to institutional investors and hedge fund managers than to the retail investors whose interests are ostensibly being