Definition
Consensus Estimates
The average of analyst forecasts for a company's financial metrics, typically earnings per share or revenue.
Consensus estimates represent the collective expectations of sell-side analysts covering a particular stock. These estimates are compiled by data providers like Bloomberg, FactSet, and Refinitiv, and serve as benchmarks against which actual results are measured. Companies that beat consensus often see stock appreciation, while misses can trigger declines. Primary research helps investors develop proprietary views that may differ from consensus, potentially identifying mispriced securities. Understanding where and why your view diverges from consensus is critical to successful investing.