Professional sell-side analysts have a difficult job. They are paid to estimate earnings for companies that often have a myriad of moving parts in an ever-changing economy. The best analysts can set aside their emotions and dispassionately assess the forward prospects for each company in their coverage, but often-times sentiment plays a role in the final output of their work.
Identifying instances in which consensus estimates are overly bearish or bullish is not an easy task either. It takes rigorous research and a contrarian mindset. These situations when found, however, can be excellent opportunities for