With the help of TipRanks’ powerful financial accountability engine, we analyzed the stock recommendations of more than 8,000 analysts. Now we have put together a list of the most successful Wall Street firms based on the average performance of their analysts against the S&P 500 (SPX).
Research is an important step to successful investing. Many people rely on the recommendations of Wall Street research firms to guide their investment decisions.
There are hundreds of Wall Street firms, represented by thousands of analysts who recommend stocks to investors. How do you know which stock recommendations to trust?
TipRanks measures and ranks the experts who give financial advice. Our goal is to provide market transparency and financial accountability to help investors made wise decisions.
Top 10 Wall Street Stock Rating Firms, Compared to the S&P 500
These are the best-performing Wall Street investment research firms compared to the S&P 500 over a one-year period. You will see the firms’ average returns over the benchmark index. Moreover, you’ll see the firm’s success rate, which tells you how often their recommendations have resulted in profitable trades for investors.
This list will help you identify the sources of investment advice you can trust.
How We Measure the Firms
Our methodology factors in the success rate, average return, and statistical significance of analysts’ ratings since 2009. We only consider analysts who have published a rating in the past year. We calculate the average success rate and the average return of all the analysts tracked by TipRanks from each firm, in this case when compared to the S&P 500.
By incorporating statistical significance into our analysis, the list prioritizes firms with a higher number of ratings. This explains why some research firms may have a higher success rate and average return yet rank lower.
1. Thrivent
Thrivent has a team of seven analysts, who have issued 77 recommendations on stocks across a diverse range of sectors. The team has been most successful at recommending Healthcare sector stocks.
The Healthcare space is where you find companies that run hospitals, develop drugs, make medical devices, and supply diagnostic labs with reagents. The Healthcare sector is one of the places investors go to for recession-resistant stocks.
Thrivent, whose stock recommendation bright spot has been the Healthcare sector, has a success rate of 55%. Its average return is 23.9% above the S&P 500’s performance.
2. CBRE
With a team of four analysts, CBRE has issued 59 stock recommendations across sectors. It has found the most success in rating Services sector stocks. The firm boasts an average success rate of 51% and its average return has been 22.2% better than the S&P 500’s performance.
3. McAdams Wright
This investment research and brokerage firm has a team of four analysts covering stocks across industries. The analysts have issued 25 stock ratings, and they have been most successful at recommending Consumer Goods stocks. Here is where you find companies that supply food, kitchen appliances, and bathroom items. Consumer Goods stocks tend to be stable in any economic condition.
McAdams Wright, which has excelled in recommending Consumer Goods stocks, has a success rate of 80%. Its average return has been 19.1% better than the S&P 500’s performance.
4. Shore Capital
Shore Capital has a team of 12 analysts, who have collectively issued 29 stock ratings. The analysts’ most profitable recommendations have been stocks in the Services sector. Shore Capital has an overall success rate of 76% and average return at 10.1% above the benchmark index.
5. Sterne Agee CRT
Sterne Agee’s team of 47 analysts has issued 384 stock ratings. The analysts have excelled the most in recommending Industrial Goods stocks. Sterne Agee has a success rate of 54% and average return that’s 8.8% better than the S&P 500.
6. National Bank
National Bank has a team of 41 analysts, who collectively have made 2,630 stock recommendations. The team has been most successful at recommending Utilities stocks. The Utilities sector is among investors’ most favorite places to look for defensive stocks, which can continue paying dividends even during a recession.
The firm has a success rate of 50% and average return of 7.2% above the benchmark index.
National Bank’s top analyst is Dan Payne, who is ranked second out of more than 8,000 analysts on TipRanks. The 5-star analyst has most excelled at recommending Basic Materials sector stocks, a group that consists of mineral mining companies.
Payne boasts an individual success rate of 83% and average return at 62.2% above the S&P 500.
7. Autonomous Research
With a team of eight analysts, Autonomous Research has issued 122 stock ratings across sectors. Its analysts have been most successful at recommending Financial sector stocks. This is where you find bank and insurance stocks. Financial sector companies are highly sensitive to economic conditions. They can to be more profitable when interest rates are rising.
Autonomous Research has a success rate of 63% and average return at 7.1% above the benchmark index.
8. Keefe, Bruyette & Woods (KBW)
KBW is a boutique investment bank and broker-dealer. It has a team of 69 analysts, who have issued 3,820 stock recommendations. The analysts have been most accurate at recommending Services sector stocks.
KBW boasts a success rate of 52% and average return at 3.1% above the S&P 500.
9. Wolfe Research
This independent investment firm has a team of 46 analysts covering a diverse range of sectors. The analysts have issued 5,220 stock recommendations. They have been most successful at recommending Consumer Goods sector stocks.
Wolfe Research has a success rate of 58% and its average return has been 2.8% better than the S&P 500’s performance.
Wolfe Research’s top analyst is Alex Zukin. The 5-star analyst boasts an individual success rate of 51% and average return of 8.6% above the S&P 500. Zukin has been most accurate at recommending Technology sector stocks.
10. GLJ Research
This Wall Street stock research firm seeks to help investors identify opportunities in a broad range of sectors. It has two analysts who have issued 225 stock recommendations.
GLJ Research’s team has been most successful at recommending Utilities stocks. The firm has a success rate of 59% and its average return has been 2.3% better than the S&P 500’s performance.
Top 10 Successful Wall Street Investment Research Firms – Summary
If you know where to look for stock recommendations you can trust, you could have a much easier time constructing a successful investment portfolio. You can view the complete list of TipRanks’ Top Performing Research Firms and adjust the settings to your preferences.
You may also benefit from insights on how to create a sector-balanced portfolio, and the best principles for successful long-term investing.
