consensus rating or consensus estimate

Consensus Estimate

The average of different analysts' estimates about a stock's or security's performance. One may make a consensus estimate for any number of measures, such as earnings, sales, or revenue. A consensus rating or estimate may be published and, assuming the estimate is well-regarded, announcements of actual measures that differ from the consensus may affect the security's price significantly.

consensus rating or consensus estimate

The average of multiple analyst ratings or estimates for a particular stock. For example, if three analysts estimate next year's earnings per share for a company at $3.00, $3.20, and $2.70, the consensus estimate is ($3.00 + $3.20 + $2.70)/3, or $2.97. Reported earnings per share different from the consensus estimate is likely to affect the stock's market price.