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We consider a stock to be “uncovered” if fewer than three analysts cover it. Coverage means that the analyst has a recommendation, target price, and forecasts, and has published a report on the company in the past six months (excluding IPO research).
Irregular coverage by only one or two analysts, with no new reports published in the past six months, could be outdated and/or biased. Academic research often requires coverage by at least three analysts, as fewer produce noisy estimates.
We don’t count our own reports, only reports by brokers or other research houses. When a stock goes from two to three analysts covering it, the stock is no longer eligible for inclusion in our Top 50 Uncovered Thai Stocks and will be removed from the Top 50 at the next update, even if it appears attractive.
What’s an “uncovered” stock according to academic research?
“Low coverage” often means fewer than 3–5 analysts, as small numbers produce noisy estimates; used in partitioning and relative neglect studies (e.g., Arbel & Strebel, 1983; Cevheroğlu-Açar et al., 2022). In prior research, Clement & Tse (2003) included data on companies with at least two analysts covering them. What was more common in prior research was the use, as in Coën et al. (2005), of a consensus forecast for companies with at least three analysts, which he repeated in Coën & Desfleurs (2008).
In his dissertation, Dr. Andrew Stotz considered stocks covered if they had at least three analyst recommendations. To achieve a reliable consensus, he considered stocks with fewer than three analyst recommendations as uncovered/low-coverage and excluded them from the study to minimize bias and ensure stability (Stotz, 2017).
We consider a stock to be “uncovered” if fewer than three analysts cover it. However, not all uncovered Thai stocks are eligible. Click here to read more about additional criteria.