Friday, March 24, 2006

Starmine for the best earnings estimates

Starmine is a service which publishes Wall Street analyst earnings estimates and recommendations. The company has graciously created a free site for individual investors, which gives you access their data. Starmine usually has better earnings estimate/recommendation data you can get on sites like Yahoo! Finance or MSN Money.

A unique and very useful feature of Starmine are "SmartEstimates". Starmine has a secret method for coming up with especially accurate earnings estimates by taking into account the historical accuracy of each analyst and the age of each estimate. Basically Starmine gives more weight to better and fresher estimates. They also calculate a predicted surprise between their smart estimate and the consensus estimate.

With the huge effect that earnings surprises have on stock prices, having a good idea of what future earnings will be like is both important and profitable.

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