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03/09/2024 |

Visualizing The Street with Analyst Consensus & Reports

With access to sophisticated financial models, research tools, and direct engagement with company management, analysts play a crucial role in the markets. They have the deep expertise required to professionally evaluate stocks for the likes of investment banks, brokerage firms, and asset management companies.

The trusted insights behind their forward-looking ratings can have significant implications for traders and investors, and we’re pleased to offer two new ways to track these powerful insights more efficiently; Introducing Analyst Consensus and Analyst Reports.

Import The Indicators

You can ride the coattails of some of the smartest minds in the markets without having to do a single minute of research. Use the below links to import these new indicators to your account today!

"Analyst Estimates: Analyst Consensus" script by TrendSpider
“Analyst Estimates: Analyst Consensus” script by TrendSpider
"Analyst Estimates: Reports" script by TrendSpider
“Analyst Estimates: Reports” script by TrendSpider

Interpreting The Indicators

Analyst Consensus

The Analyst Consensus indicator paints the distribution of Analyst ratings for a given market over time and is visualized as a lower indicator.

  • Light Green area: Buy ratings
  • Dark Green area: Buy ratings prevailing
  • Red area: Sell ratings
  • Dark Red area: Sell ratings prevailing
  • Grey area: Hold ratings

In the below image, we see the SMCI daily chart. It’s incredible to watch the change in consensus amongst analysts over the past year. Just four quarters ago, ‘sell’ was the prevailing rating with a 100% consensus. The May 2023 earnings report, however, brought a notable shift in 12-month expectations. Just a quarter later, buy was the prevailing rating.As the stock now trades nearly 10x higher since analysts flipped their bias, some buy ratings are beginning to turn into holds as we can see in the uptick of the grey area over the past several weeks.

Analyst Reports

You can keep track of analyst actions directly on your chart with the Analyst Reports indicator.

  • Green labels: Buy rating
  • Red labels: Sell ratings
  • Number within label: Amount of ratings
  • Purple candle: Upgrade from sell to hold or hold to buy
  • Orange candle: Downgrade from buy to hold or hold to sell

Each label contains a number that represents the amount of new ratings on the candle it’s associated with. Buy ratings are printed above the candle while sell ratings are printed below the candle.

When an analyst upgrades their rating, the candle upon which the upgrade occurred will be colored purple. When an analyst downgrades their rating, the candle upon which the downgrade occurred will be colored orange.

As mentioned at the top of this article, Analyst Consensus and Analyst Reports are custom indicators that must be imported into your account. If you’d like to learn more about custom indicators, have a read through our Developer Documentation.

If you have any questions, feel free to reach out to us via the ‘Contact Us’ button in the bottom-right corner of your chart view.