An examination of Value Line's long-term projections
Unlike previous papers, which have focused on the timeliness ranks, we examine Value Line's 3-5 year projections for stock returns, earnings, sales and related measures. We find that Value Line's stock return and earnings forecasts exhibit large positive bias, although their sales predictions do not. For stock returns, Value Line's projections lack predictive power; for other variables predictive power may exist to some degree. Our findings suggest the spectacular past performance of the timeliness indicator reflects either close alignment with other known anomalies or data mining, and that investors and researchers should use Value Line's long-term projections with caution.
Year of publication: |
2008
|
---|---|
Authors: | Szakmary, Andrew C. ; Conover, C. Mitchell ; Lancaster, Carol |
Published in: |
Journal of Banking & Finance. - Elsevier, ISSN 0378-4266. - Vol. 32.2008, 5, p. 820-833
|
Publisher: |
Elsevier |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
An examination of Value Line's long-term projections
Szakmary, Andrew Charles, (2008)
-
An examination of Value Line’s long-term projections
Szakmary, Andrew C., (2008)
-
The timeliness of accounting disclosures in international security markets
Conover, C. Mitchell, (2008)
- More ...