Research Tops Journal's "Best on the Street" Survey Again

Published: May 2005

072505_marketsFor the second year in a row, Merrill Lynch took home the most awards in The Wall Street Journal's "Best on the Street" survey of U.S. research analysts' performance.

"Our strong results clearly showcase our leadership in providing high-quality fundamental stock analysis across all sectors," said Steve Tighe, head of Americas Equity Research. "It is particularly gratifying to see that our percentage score was way ahead of all the major U.S. firms."

ML earned 10 awards in The Journal's 13th annual survey. In all, 73 firms were ranked according to the total number of Best on the Street awards their analysts earned.

Two ML analysts placed first in their industry categories, Steven Milunovich for computers and office equipment, and Alison Jacobowitz for insurance, non-life.

The Journal noted that Mr. Milunovich was among the few analysts not caught by surprise by the threefold price rise in shares of Apple Computer Inc. He put a Buy rating on Apple in mid-January and reaped a return of 171 percent through the end of the year. He also was commended for his Buy ratings on NCR Corp. and Lexmark International Inc.

Ms. Jacobowitz was singled out for her Buy rating of Philadelphia Consolidated Holding Co., a commercial property-and-casualty company whose shares returned 40 percent. Later, The Journal wrote, she correctly foresaw that its stock price had become a little too high.

Leonard Teitelbaum, who has been following major food companies since the 1960s, earned a No. 2 ranking in that category. His top performers in 2004 were Bunge Ltd., an oilseed processor whose stock returned 76 percent in the 11 months he rated it a Buy, and Smithfield Foods.

In the general industrials category, John Inch was also a second-place finisher, with full-year Buy ratings on General Electric Company (a 21 percent return), Rockwell Automation Inc. (42 percent) and Tyco International Ltd. (35 percent).

The survey's data were compiled, verified and reviewed by Thomson Financial, a division of Thomson Corporation. "Although there are many ways to rank analysts, including by their popularity with institutional investors, The Wall Street Journal's survey is strictly quantitative and based solely on stock-picking ability — which recommendations generated the best returns," the newspaper said in announcing the results.

The Journal said Thomson identified analysts in 44 industry categories, with a focus on timely Buy and Sell recommendations. The top five performers in each category were culled from among 1,608 eligible analysts, based on data from more than 4,000 analysts at more than 270 firms.

Rank

Name

Category

Years Recognized

1

Steven Milunovich

Computers & Office Equipment

4

1

Alison Jacobowitz

Insurance: Non-Life

1

2

Leonard Teitelbaum

Food

3

2

John Inch

General Industrials

3

4

Edward Spehar

Insurance: Life

2

4

Michael Linenberg

Airlines

4

5

Katherine Martinelli

Medical Equipment

2

5

Lauren Rich Fine

Advertising & Publishing

8

5

Marni Shapiro

Retailers: Broad Line & Apparel

1

Best on the Street
Merrill Lynch earned 10 awards in The Wall Street Journal's 13th annual survey.
Read The Wall Street Journal article