Lately, When Analysts Say Buy, It Has Paid to Do What They Say

  • Quant factor tied to price-target changes is outperforming
  • Peloton, Tesla, Zoom, Apple among those with strong revisions
Photographer: Michael Nagle/Bloomberg
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The best route to success has been simple in stocks of late. If an analyst raises a price target, you buy.

Of 17 so-called equity factors -- traits and qualities by which stocks can be categorized for investment purposes -- the one that groups companies according to the biggest analyst price-target revisions is the best performing over the last week. The larger the change to sell-side expectations for share prices, the better the returns.