TY - JOUR T1 - Performance of Stocks Recommended by Brokerages JF - The Journal of Investing SP - 23 LP - 34 DO - 10.3905/joi.2004.391039 VL - 13 IS - 1 AU - J. Randall Woolridge Y1 - 2004/02/29 UR - https://pm-research.com/content/13/1/23.abstract N2 - Examination of performance over 1993–2002 indicates that average quarterly and cumulative returns of stocks recommended by brokerage firms are slightly below the returns of the S&P 500. And recommended stock returns are more volatile. Stocks recommended by top-tier brokerage firms perform more poorly than those recommended by mid-tier or regional firms. There is considerable variability across recommendations of individual brokerage firms. The stock recommendations of Merrill Lynch and Raymond James show the best results among top-tier and mid-tier or regional brokerage firms. On a risk-adjusted basis, only stocks recommended by three of the ten brokerage firms with a full ten years of data outperformed the S&P 500. ER -