Accenture Plc, which recently saw its Tiger Woods-centered advertising campaign turn to dust overnight, was analysts’ favorite stock in 2002. Sixteen analysts urged investors to buy the stock; not one said to hold or sell. How did Accenture do? Shares fell 33 percent that year.
That result was not a fluke. For 11 of the past 12 years, I have studied the performance of analysts’ four favorite stocks, and the fate of the four they most scorned. My analysis covers 1998 through 2009, except for 2008, when I was temporarily retired as a columnist.
Their favorites, on average, were flat during those years while the four stocks they hated most gained about 6 percent annually. The Standard & Poor’s 500 Index had an average gain of about 9 percent.
Thanks to all friends