Why do people watch analysts?
Analysts study companies.
They give advice: buy, hold, or sell.
Many UK investors follow their advice.
Leading analysts can shape market moves.
Bank-based analysts
These experts work at big firms like Barclays or JPMorgan.
Their reports often gain attention.
- They top the UK analyst rankings.
- They offer trusted, timely insights.
Some cover smaller companies, such as Rolls-Royce and Naked Wines.
They also get high rankings.
Independent analysts
They work outside big banks.
Their views often feel more honest.
- Mark Hiley heads The Analyst.
- He says bank reports can miss deeper insights.
Analysts rated by results
Websites track which advice works best.
- TipRanks ranks UK analysts by accuracy.
- WallStreetZen checks who delivers strong returns.
Watching top performers helps investors find reliable voices.
Well-known media analysts
Some analysts reach fame through the media.
- Terry Smith (Fundsmith)
- Called the “English Buffett.” He picks long-term value stocks.
- David Kuo (Motley Fool UK)
- A former chemist turned trusted voice.
- Simon Cawkwell (“Evil Knievel””)
- Known for spotting risky companies and fraud.
- Justin Urquhart Stewart
- A familiar face on TV and radio.
Analysts in the smaller company space
Some analysts focus on small or mid-cap stocks.
- Citywire highlights top small/mid-cap analysts.
- They spot hidden gems beyond large FTSE firms.
Do analysts beat the market?
It varies.
- Between 2015 and 2022, many of the picks lagged behind the FTSE 100.
- In 2023–2024, some beat it.
- They were very bullish early in 2024, echoing past upsides.
So, analysts can help—but not always.
Benefits of following analysts
- Deeper insight
- They dig into financials and company calls.
- Fast updates
- They react quickly to earnings and news.
- Long-term view
- Some think beyond short-term gains.
- Market mood gauge
- Their tone signals investor sentiment.
Be aware of limits
- Optimism bias
- Bank analysts often favour “buy” calls.
- Conflict risk
- Some are tied to their firms’ deals.
- Crowded ideas
- Popular picks can lose value.
- Short-term focus
- Frequent updates may distract from long-term value.
How to use analyst advice wisely
- Check performance over several years.
- Combine bank and independent sources.
- Understand why they made a call.
- Read the logic behind their advice.
- Do your research, too.
UK specifics
- Bank analysts focus on FTSE 100 giants.
- Independent analysts dig into smaller firms.
- Some now aim at green or ethical investing.
Notable analyst favourites
- JD Sports was once the most recommended stock.
- Other top-rated names include BAE, GSK, Barclays, and Glencore.
- However, popular picks can lead to crowded trades.
Key lessons
- Don’t follow the crowd unthinkingly.
- Track long-term record, not just opinions.
- Use multiple views for balance.
What’sWhat’s changing now
- Independent research is growing.
- Platforms track analyst accuracy for clarity.
- New tools make following analysts easier.
Summary
Analysts can guide, but you must choose wisely.
Look at their track record and reasoning.
Mix sources and add your thoughts.
When done correctly, analyst insight enhances your decision-making.