Wall Street Bulls Look Optimistic About OneSpan (OSPN): Should You Buy?

Group 1 - OneSpan has an average brokerage recommendation (ABR) of 1.80, indicating a consensus between Strong Buy and Buy, with 60% of the recommendations being Strong Buy from five brokerage firms [2][4] - The reliability of brokerage recommendations is questioned, as studies suggest they have little success in guiding investors towards stocks with significant price appreciation potential [4][5] - Analysts from brokerage firms tend to exhibit a positive bias in their ratings due to vested interests, leading to a higher number of favorable ratings compared to negative ones [5][9] Group 2 - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, making it a more effective indicator of near-term stock performance compared to ABR [7][10] - The Zacks Rank is updated more frequently than ABR, as it reflects real-time changes in earnings estimates, providing timely predictions for future stock prices [11] - OneSpan's Zacks Consensus Estimate for the current year remains unchanged at $1.34, suggesting that analysts have steady views on the company's earnings prospects, which may lead to performance in line with the broader market [12][13]