Wall Street Analysts Think Dorian LPG (LPG) Is a Good Investment: Is It?

Group 1 - Dorian LPG has an average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy based on recommendations from three brokerage firms, all of which are Strong Buy [2][5] - Despite the Strong Buy recommendation, reliance solely on brokerage recommendations may not be prudent, as studies show limited success in guiding investors to stocks with the best price increase potential [5][10] - Brokerage analysts often exhibit a positive bias in their ratings due to vested interests, leading to a higher frequency of Strong Buy recommendations compared to Strong Sell [6][10] 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, which correlate strongly with near-term stock price movements [8][11] - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while the ABR may not be up-to-date [9][12] - For Dorian LPG, the Zacks Consensus Estimate for the current year has declined by 10.9% to $2.43, indicating growing pessimism among analysts regarding the company's earnings prospects [13][14] Group 3 - The recent decline in the consensus estimate and other related factors have resulted in a Zacks Rank of 4 (Sell) for Dorian LPG, suggesting caution despite the ABR indicating a Buy [14]