AI Investment Analysis: Large Language Models (LLMs) for Stock Ratings

To enhance the reasoning capabilities of LLMs, we employ Chain-of-Thought and few-shot prompting techniques, providing output examples as guidance. Company-specific input data is presented in a structured format, with textual information placed first and numerical data displayed in tabular form. Finally, a basic Chain-of-Verification (CoVE) process is implemented to ensure the accuracy of predicted dates. Problem Formulation To assess the accuracy of these ratings, analysts typically examine stock market performance following the release of a rating and compare the returns of companies across different rating categories. Specifically, we compute each company’s actual return (R_i,t) and its industry-relative return (R_i,t^ind), then assign the company’s return to one of five quantiles. By comparing the returns within each quantile against the corresponding assigned ratings, we can evaluate rating correctness. To this end, we define a metric function to quantitatively assess the accuracy of each rating. Company Rating (R_i,t): Predicts a company’s performance over the next t months; rating values are {-2, -1, 0, 1, 2}, representing Strong Sell, Moderate Sell, Hold, Moderate Buy, and Strong Buy, respectively. 03 Experiments Data The study covers constituents of the U.S. S&P 500 Index from January 2022 to June 2024. Analyst Stock Ratings During this period, we collected 45,000 analyst rating records across 126 companies. These ratings fall into five main categories: Maintain (75.90%), Reiterate (7.25%), Downgrade (6.27%), Upgrade (5.68%), and Initiate (4.89%). The top five rating agencies—Morgan Stanley, Barclays, Wells Fargo, Citigroup, and RBC Capital—accounted for 31.61% of all ratings. The dataset includes the name of the rating agency, the date of rating issuance, and the rating content, but excludes target dates and target price information. Financial News Summaries We gathered news articles related to S&P 500 constituents and applied Named Entity Recognition (NER) to filter out irrelevant content. On average, each stock had 39.63 news articles per month, totaling approximately 187,000 characters and 40,000 words, containing 74.70 URLs, while 34.40 articles per stock were missing monthly. We used the GPT-4-32k model to generate company- and industry-level news summaries, highlighting key events and trends, and designed two distinct user prompts to optimize output quality. Additionally, we performed sentiment analysis on the news summaries using GPT-4-32k, assigning scores ranging from -5 to 5, with separate scoring templates tailored for company- and industry-level assessments. Stock Prices and Technical Indicators We collected daily closing prices for S&P 500 constituents and computed a series of technical indicators, including current market price, 52-week price range, 90-day historical volatility, and performance over the past 1, 3, and 12 months. Fundamental Financial Data From January 2022 to March 2024, we aggregated quarterly financial reports (Forms 10-Q and 10-K) filed by companies with the U.S. Securities and Exchange Commission (SEC) using the finagg API.

2022 Energy Soft Power: OPEC Says Oil Demand Will Exceed Pre-Pandemic Levels; Goldman Sachs Raises Oil Price Forecasts

Goldman Sachs last week raised its Brent crude oil price forecasts to $140 per barrel for Q3 (previously $125), $130 per barrel for Q4 (previously $125), and $130 per barrel for Q1 2023 (previously $115). As energy stocks gain momentum and oil price expectations continue rising, Barclays recently adjusted target prices for several U.S. energy stocks under its coverage. Jeanine Wai, Barclays’ energy analyst, maintains a constructive outlook on oil, as well as exploration and production (E&P) energy stocks. She raised the average target price for her covered energy stocks by 18%, noting that despite long-term headwinds, these stocks still offer healthy upside potential and compelling yields. Meanwhile, Barclays updated its oil price forecasts, expecting Brent crude to rise to $110 per barrel in both 2022 and 2023. Jeanine Wai raised Barclays’ target price for Occidental Petroleum from $74 to $84 and maintained its 'Overweight' rating; raised Marathon Oil’s target price from $30 to $37 and retained its 'Overweight' rating; raised Hess Corporation’s target price from $131 to $153 and maintained its 'Overweight' rating; and raised EOG Resources’ target price from $149 to $168, also retaining its 'Overweight' rating. In addition, she raised Diamondback Energy’s target price from $160 to $180 while maintaining its 'Overweight' rating; raised Devon Energy’s target price from $73 to $90 and kept its 'Hold' rating; raised Coterra Energy’s target price from $35 to $41 and maintained its 'Overweight' rating; and raised ConocoPhillips’ target price from $132 to $142, retaining its 'Overweight' rating. [Author Profile] Deng Zhenghong, hailed as the 'Father of Chinese Soft Power', founded the Deng Zhenghong Soft Power Theory, established the corporate soft power framework and the Soft Power Index tool, pioneered the concepts of energy soft power and low-carbon soft power, and was the first to systematically quantify and value-assess soft power. He holds a full suite of proprietary intellectual property rights—including soft power indices and valuation methodologies—for enterprises, cities, and nations. He exclusively publishes three major soft power rankings: the World Top 500 Corporate Soft Power Ranking, the Soft Power Ranking of Mainland Chinese Cities and Regions, and the Global Top 100 National Soft Power Ranking. He served as chief planner and principal author of the State Grid Corporation of China’s 'Corporate Soft Power Series' (covering Core Values, Core Models, and Core Capabilities).

Barclays maintains Eastman Chemical at Equal-Weight, raises price target to $74 from $72

4 days ago

Barclays maintained its Equal-Weight rating on Eastman Chemical while raising its price target to $74 from $72, indicating an 11.2% potential upside from the recent close.

TradingView

2026-05-17

Allworth Financial LP Reduces Stake in Eastman Chemical Company

2026-05-19

Is Eastman Chemical Co (EMN) a Bargain After 3.9% Drop? GF Value Says Undervalued

2026-05-20

EMN Financials: Revenue Breakdown, Margins & Competitor Comparison

2026-06-17

Eastman Chemical Co (EMN) Institutional Confidence

2026-06-18

Eastman Chemical Co (EMN) Revenue Breakdown: Business Segments, Regional Revenue & Profit Contribution