Should You Invest in OneSpan (OSPN) Based on Bullish Wall Street Views?

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on OneSpan (OSPN), and highlights the potential misalignment of interests between brokerage firms and retail investors [1][5][10]. Group 1: Brokerage Recommendations - OneSpan has an average brokerage recommendation (ABR) of 2.00, indicating a Buy, based on recommendations from four brokerage firms, with two of them rated as Strong Buy, representing 50% of all recommendations [2][14]. - The article suggests that relying solely on brokerage recommendations may not be a sound investment strategy, as studies indicate these recommendations often fail to guide investors effectively towards stocks with high price appreciation potential [5][10]. Group 2: Zacks Rank vs. ABR - The Zacks Rank is presented as a more reliable tool for predicting stock price movements, categorizing stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and is based on earnings estimate revisions rather than brokerage recommendations [8][11]. - The Zacks Rank is timely and reflects the latest earnings estimate revisions, while the ABR may not always be up-to-date, leading to potential discrepancies in investment guidance [12]. Group 3: Earnings Estimates for OneSpan - The Zacks Consensus Estimate for OneSpan has increased by 5.4% over the past month to $1.45, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 2 (Buy) for OneSpan, suggesting that the Buy-equivalent ABR may serve as a useful guide for investors [14].