Okay, time to play the equity analyst home game. Rank the following factors in terms of their importance (from a statistical point of view) in dictating whether, and how many, equity analysts follow a stock.
- PE ratio
- Price-earnings growth ratio (PEG)
- Average daily volume traded
- Industry (i.e., whether the company is in tech, biotech, consumer, industrial, etc.)
- Market capitalization
- Trailing one-year share price percentage change
- Forecast one-year share price percentage change
- Trailing one-year sales growth
- Forecast one-year sales growth
- Trailing one-year earnings growth
- Forecast one-year earnings growth
- Having underwritten an offering within five years
For bonus points, how do you think the factor rankings have changed, if at all, in recent years?
I am boarding a plane right now, but I’ll be back later today with the perhaps surprising answers.