Consensus recommendation

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Consensus Recommendation

The mean or median recommendation that analysts make on a stock. The consensus recommendation is calculated simply by compiling recommendations and taking the average or median. Importantly, the consensus recommendation does not consider past accuracy or respect of the different analysts.

Consensus recommendation.

A consensus recommendation for an individual stock compiles ratings from a number of analysts who track that stock. The recommendation is expressed as either the mean or median of the separate recommendations.

Calculating the consensus is a multi-step process that involves grouping the terms that analysts use to recommend buying, selling, or holding, generally into three or five categories, assigning a scale, and computing the result either by averaging the numbers for the mean or identifying the median, which is the point at which half the views are higher and half are lower.

A consensus recommendation provides a snapshot of current thinking about a stock, so it can serve as a benchmark against which you can compare a single analyst's opinion to gauge how mainstream it is.

But like any statistical mean or median, a consensus recommendation can distort strong differences at either end of the scale. Further, if the report accompanying the consensus view doesn't point out significant differences in the viewpoints of the various analysts it includes, you won't be able to tell where the most respected analysts stand on the stock.

In addition, you should be aware that the consensus recommendation for any given stock might differ from one research company to the next. This is because the mathematical formula that assigns weights to the individual recommendations will vary, based in part on how many levels of differentiation the research company uses and how it interprets the words that analysts use to express their opinions.

References in periodicals archive ?
The binational private sector council has submitted and prioritized numerous consensus recommendations designed to increase trade in energy-related products and services, including ways to enhance energy cooperation through the North American Free Trade Agreement.
This is in contradistinction to the observation that nodulocystic or severe inflammatory acne patients who have recently completed treatment with isotretinoin are among those most likely to benefit from treatment of their acne scars with modalities such as laser, dermabrasion, or chemical peels," the experts wrote in the consensus recommendations.
The 2006 Bethesda International Consensus Recommendations on the Flow Cytometric Immunophenotypic Analysis of Hematolymphoid Neoplasia established a core set of antibody specificities but failed to reach consensus as to panel design--that is, which antibodies to combine together in which tubes; the many independently-developed LDTs could not be easily reconciled into a single assay.
The educational resources included in SmartPN are based on new consensus recommendations issued by ASPEN, which are intended to help promote clinical benefits and minimize risks associated with PN.
The key objectives of the initiative are: expanding the peace constituency through friendship groups in both countries; and improving support for better Afghanistan-Pakistan relationship through dialogue among the influential stakeholders and informing policy makers through consensus recommendations.
A panel of 26 hepatologists and infectious diseases specialists and a patient advocate developed the original consensus recommendations.
Our goal for these consensus recommendations is to create a system for maternal care that complements and supplements the current neonatal framework in order to reduce maternal morbidity and mortality across the country" Dr.
and Bob Gibbs (R-Ohio), the Waters of the United States Regulatory Overreach Protection Act instead would require the agencies to write a proposed rule jointly with state and local officials based on consensus recommendations, which would be subject to public review.
The lower anogenital squamous terminology standardization project for HPV-associated lesions: background and consensus recommendations from the College of American Pathologists and the American Society for Colposcopy and Cervical Pathology.
Raine, who is the lead author of new consensus recommendations calling for the ban, said restricting marketing is not going to be a cure for childhood obesity, but it is one step in a multi-pronged approach to creating an environment where the healthy choice is the easy choice.
The FACI had its first meeting on March 30, 2012, and will have its next public meeting in Washington on March 11, 2013, and while the disparate group of state regulators, industry mavens and consumer advocates has become more congenial with each other, they say the group is still fumbling with both consensus recommendations and a clear path forward.
A joint session of the National Assembly and the Senate passed with consensus recommendations of the bi-partisan Parliamentary Committee on National Security (PCNS) containing foreign policy guidelines and terms for rebuilding ties with the US.