The Street: Why JPMorgan Is The Best Place For Analyst Recommendations

By SIMON CONSTABLE
NEW YORK (TheStreet) -- Who do you call when you need a stock recommendation? If you want to make money, then the best bet may be JPMorgan Chase (JPM).
Why? It has the research department with the highest number of star analysts, and stars' recommendations produce bigger stock gains than the rest of the herd. Not far behind in the count is Bank of America Merrill Lynch (BAC).
On average, stars from all firms produce monthly average excess returns (or alpha) of up to 1.58%, according to a recent study. In the simplest terms, alpha is the amount of value added by an analyst relative to a benchmark such as the S&P 500.
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