Data is for information purposes only and does not constitute advice.
A consensus forecast figure is normally an average or median of all the estimates from individual analysts tracking a particular share. Based on projections, models, sentiments and research, analysts strive to come up with an estimate of what the company will do in the future.Consensus estimates are not an exact science. All reports rely not only on financial statements which may be manipulated by management or other staff, with access to company records - they also involve inputs, such as footnotes, management commentary, research into the industry overall, peer companies, and macroeconomic analysis. Generally, ratings from shares that have wide analyst coverage could be deemed more robust than those that have narrow analyst coverage.If a company exceeds consensus estimates, it is usually rewarded with an increase in its share price. If a company falls short of consensus numbers - or sometimes if it only meets expectations - its share price can fall. The date the forecast was made is important, as if the share has moved considerably since then, the rating may no longer apply.
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