consensus rating or consensus estimate
Consensus Estimate
The average of different analysts' estimates about a stock's or security's performance. One may make a consensus estimate for any number of measures, such as earnings, sales, or revenue. A consensus rating or estimate may be published and, assuming the estimate is well-regarded, announcements of actual measures that differ from the consensus may affect the security's price significantly.
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consensus rating or consensus estimate
The average of multiple analyst ratings or estimates for a particular stock. For example, if three analysts estimate next year's earnings per share for a company at $3.00, $3.20, and $2.70, the consensus estimate is ($3.00 + $3.20 + $2.70)/3, or $2.97. Reported earnings per share different from the consensus estimate is likely to affect the stock's market price.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.