Analyst ratings... useful at all?

[ajc3388]

I was wondering what the opinions were on analyst ratings, accurate and helpful or hyped up and overrated? This includes things like the IBD 100, Stock Scouter, Motley Fool Caps rating, IBD Check up, Zach's ranking, Newsletters etc. I've often heard that they'll lead you in the wrong direction, but it seems others also listen to them with some success.

What are your opinions?

[billyjoe]

ajc,
You'll find that an analysts upgrade or downgrade will make you money or lose you money regardless of the validity of their premise. I once lost money on a downgrade of a stock that beat estimates and issued an increase in guidance because the analyst thought the representative wasn't "enthusiastic" in issuing the increased guidance. Analysts are often wrong but their words carry much clout at least in the short term.

-------------billy

[IIC]

If analysts knew what they were doing they'd be stock pickers...Doug