This paper investigates whether analysts who choose to issue long-term growth forecasts signal effective effort to
gain value-relevant perspective of the long-term prospects of the firms they follow. We hypothesize that, if so, the
stock recommendations of these analysts yield a greater market response and the analysts have better career prospects
than analysts who choose not to issue long-term growth (hereafter LTG) forecasts. We find results generally consistent
with our hypotheses. Thus, we identify previously undocumented benefits accruing to analysts who issue LTG
forecasts.