CFRA is a fiercely independent investment research provider, and our track record of “Sell” ratings is a testament to this independence. On average, Sell ratings amount to 10%-15% of CFRA’s fundamental STARS ratings. Over the past year, CFRA Sell ratings underperformed the benchmark by 18.5 percentage points.
Since January 1, 1999, CFRA’s Sell ratings underperformed the benchmark by 5 percentage points annually. Importantly, past performance is not a valid indicator of future results. True to CFRA’s forensic accounting roots, our analysts are focused on assessing an equity’s embedded expectations and identifying catalysts that could lead to expectation revisions. Fundamental equity research analysts work directly with CFRA’s forensic accounting research team. CFRA’s proprietary, proven forensic accounting methodology uncovers risks of hidden deterioration in the underlying business, future accounting restatements, and/or weaknesses in corporate governance.
