Sweden - 2007
Dagens Industri and StarMine Present Sweden's Top-ranked Brokers
Dagens Industri and StarMine, the leading provider of objective ratings of securities analysts, are pleased to announce the results of StarMine's 2007 annual survey of broker performance for Sweden. StarMine measures broker performance based on stock recommendation returns and earnings estimate accuracy. StarMine is a subsidiary of Thomson Reuters and utilizes the I/B/E/S system as its data source. The 2007 rankings for Sweden are based on the period November 1, 2006 thru October 31, 2007.
Methodology: View our awards methodology
| StarMine Broker Rankings Methodology | |
A Short Description StarMine measures the performance of brokers over sets of stocks in two different ways: by the returns of their buy/hold/sell recommendations and the accuracy of their earnings estimates. StarMine computes scores on each stock the firm covers. In the recommendations category, brokers score well if they recommend a "Buy" and the stock outperforms its industry, a "Hold" that stays in-line with its industry, and a "Sell" that underperforms its industry. In the estimates category, brokers score well for issuing estimates that are timely, significantly different from consensus, and more accurate than consensus. StarMine aggregates the scores on each stock to arrive at an overall score for the broker in each category. A More
Detailed Description
Single-Stock Scores -
RecommendationsStarMine's proprietary recommendation metric, the Single-Stock Recommendation Score (SRS), captures the performance of a broker on a single stock. For each stock the broker is scored based on the level of recommendation (strong buy, buy, hold, sell, or strong sell) and the performance of the stock relative to market-cap weighted index of the stocks in the same industry. StarMine uses the Global Industry Classification Standard (GICS) for its industry definitions. If the broker recommended a "Buy," the broker gets a score proportional to the amount that the stock outperformed its industry. A "Strong Buy" earns both a higher risk and potentially higher reward. It requires that the stock outperform a minimum benchmark before earning a positive score, then accelerates the reward for beating or missing it. A "Sell" is the mirror image of a Buy, and is rewarded for under-performing the industry. A "Strong Sell" is the mirror image of the Strong Buy, and is rewarded for significantly under-performing the industry. A "Hold" or "Neutral" is rewarded when the stock stays closely in line with the industry benchmark. The further from the benchmark, in either direction, the lower the score. Of course, brokers change their recommendations throughout the year. A composite score is created from each individual recommendation over a given time period and is adjusted for the length of time held and the "opportunity" (based on the stock's volatility) that was available over the time period. The adjustment ensures that scores are fairly comparable across different stocks. The final score is normalized to a 1 to 100 scale, where 1 is the worst and 100 the best. The scale is in percentiles; that is, a score of 100 is earned approximately one percent of the time. Single-Stock Scores - Estimates StarMine's proprietary estimate metric, the Single-Stock Estimate Score (SES), measures the accuracy of each broker's earnings forecasts. SES is a relative measure; that is, brokers are compared against their peers. SES ranges from 0 to 100, with 50 representing the average broker. To get a score higher than 50, a broker must make estimates that are both significantly different from and more accurate than other brokers' estimates. SES takes into account many factors: the broker's absolute forecast error, the broker's error compared to other brokers, the variance of the brokers' errors, the timing of the estimates, and the absolute value of the actual earnings for the stock. SES is computed daily and aggregated over multiple time periods to provide an overall score on a stock. Aggregating Single-Stock Scores to Get a Broker Score Once a score has been determined on each stock, aggregate scores are computed for the broker over a list of stocks. The overall recommendation score is computed by taking a simple average of the broker's Single-Stock Recommendation Scores (SRS) on all stocks in the list, and statistically adjusting to compensate for the differences in coverage among brokers. The overall estimate score is computed similarly by using the broker's Single-Stock Estimate Scores (SES). Positive scores on either metric indicate above average performance, and negative scores indicate below average performance. To qualify for our rankings, brokers need to cover a minimum number of stocks in the given stock set. Coverage Requirements In order to be included in the Broker Rankings, brokers must meet certain coverage requirements. For large-cap stock sets brokers must cover at least 50% of the stock set. For mid- and small-cap stock sets, brokers must cover at least 20% of the stock set. Non-Participating Firms The following firms did not participate in StarMine's 2007 Broker Rankings for Sweden: Handelsbanken, Lehman Brothers and Sanford C. Bernstein & Co. |
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Dagens Industri and StarMine Present Sweden's Top-ranked Brokers
Recommendations
Sweden OMX
| Rank | Broker | Stocks Scored |
|---|---|---|
| 1 | Öhman Fondkommission | 20 |
| 2 | Carnegie Investment Bank | 26 |
| 3 | Danske Markets Equities (ESN Partnership) | 19 |
| 4 | Kaupthing Bank | 25 |
| 5 | SEB Enskilda | 25 |
| 6 | Citigroup | 19 |
| 7 | Merrill Lynch | 16 |
| 8 | ABG Sundal Collier | 26 |
| 9 | ABN AMRO | 18 |
| 10 | Evli Bank | 14 |
Recommendations
Sweden Mid- and Small-Cap Stocks
| Rank | Broker | Stocks Scored |
|---|---|---|
| 1 | CA Cheuvreux | 27 |
| 2 | Kaupthing Bank | 60 |
| 3 | Carnegie Investment Bank | 78 |
| 4 | ABG Sundal Collier | 60 |
| 5 | Danske Markets Equities (ESN Partnership) | 23 |
| 6 | Nordea Securities | 37 |
| 7 | Swedbank Securities | 63 |
| 8 | Öhman Fondkommission | 26 |
| 9 | SEB Enskilda | 62 |
| 10 | ABN AMRO | 16 |
Earnings Estimates
Sweden OMX
| Rank | Broker | Stocks Scored |
|---|---|---|
| 1 | Swedbank Securities | 24 |
| 2 | Carnegie Investment Bank | 26 |
| 3 | Öhman Fondkommission | 20 |
| 4 | Goldman Sachs | 24 |
| 5 | Citigroup | 19 |
| 6 | CA Cheuvreux | 24 |
| 7 | Evli Bank | 14 |
| 8 | SEB Enskilda | 25 |
| 9 | Kaupthing Bank | 25 |
| 10 | UBS | 26 |
Earnings Estimates
Sweden Mid- and Small-Cap Stocks
| Rank | Broker | Stocks Scored |
|---|---|---|
| 1 | ABG Sundal Collier | 60 |
| 2 | Öhman Fondkommission | 26 |
| 3 | Swedbank Securities | 63 |
| 4 | CA Cheuvreux | 27 |
| 5 | SEB Enskilda | 62 |
| 6 | Kaupthing Bank | 60 |
| 7 | Carnegie Investment Bank | 78 |
| 8 | ABN AMRO | 16 |
| 9 | Danske Markets Equities (ESN Partnership) | 23 |
| 10 | HQ Bank | 31 |
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