Analyst coverage can be seen as an indicator of a company's information transparency and market attention. High coverage usually means that the company's information disclosure is relatively sufficient, and the market has a strong consensus on its fundamentals, reducing the risk of information asymmetry. In this case, stocks may be less likely to be overvalued because market participants can more easily obtain relevant information. However, high coverage may also suggest that the market is overly concerned about the stock, leading to overheated short-term trading, which in turn triggers the risk of future corrections. Combined with the fact that stocks with high coverage are often accompanied by higher trading activity, this indicator can also be seen as a way to measure market sentiment. In quantitative investment, analyst coverage can be used as an important factor in stock selection strategies to assist in judging the rationality of stock valuations, market sentiment, and potential investment opportunities.