Wall Street Analysts See AudioEye (AEYE) as a Buy: Should You Invest?

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on AudioEye (AEYE), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][5][10]. Group 1: Brokerage Recommendations - AudioEye has an average brokerage recommendation (ABR) of 1.20, indicating a consensus between Strong Buy and Buy, with 80% of recommendations being Strong Buy and 20% being Buy [2][4]. - Despite the positive ABR, the article cautions against making investment decisions solely based on this metric due to the historical ineffectiveness of brokerage recommendations in predicting stock price increases [5][10]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, often issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Group 2: Zacks Rank - The Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, with a strong correlation between these revisions and near-term stock price movements [8][11]. - The Zacks Consensus Estimate for AudioEye has increased by 6.7% over the past month to $0.71, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - AudioEye currently holds a Zacks Rank 2 (Buy), suggesting that the positive ABR can serve as a useful guide for investors [14].