Schaeffer's Tool Box: IntercontinentalExchange is Climbing a Wall of Worry

CINCINNATI--(Business Wire)--
When setting their investing strategies, traders often consult the opinions of
the Wall Street experts, otherwise known as stock analysts or brokerage firms.
Analyst rankings are an important sentiment indicator that we track here at
Schaeffer's, since they are a quick way to gauge how Wall Street feels toward a
certain stock. Analysts use different ranking systems based on the preferences
of their specific brokerage firms. These rankings are labeled "buy,"
"outperform," "overweight," "neutral," "sector perform," and so on. For our
purposes, we typically rely on the data gathered by Zacks, which divides the
analysts' opinions into five broad categories: strong buy, buy, hold, sell, and
strong sell.

These ratings become a source of particular interest when they're adjusted,
since analyst upgrades frequently result in buying pressure, whereas analyst
downgrades often lead to selling pressure. Naturally, the more "buy" ratings
levied against a security, the more likely the shares are to be downgraded, and
vice versa. It is this potential for adjustment that is the lynchpin of today's
Schaeffer's Tool Box filter. By selecting either the "Analyst least liked
stocks" or the "Analyst most liked stocks" option in the Schaeffer's stock
screener, we can find a list of equities that have attracted a heavy degree of
"sells" or "buys," respectively, or those stocks most likely to be upgraded or
downgraded.

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Schaeffer's Investment Research
Joseph Hargett, 513-589-3800
jhargett@sir-inc.com

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