We show that, consistent with economic incentives, analysts from sell-side firms generally recommend quot;glamourquot; (i.e., positive momentum, high growth, high volume, and relatively expensive) stocks. Naive adherence to these recommendations can be costly, because the level of the consensus...

We investigate the relation between analyst stock recommendations and eight concurrently available variables that have predictive power for stock returns. We find that analysts generally pay little attention to the large sample predictive attributes of these variables. In seven out of eight...