Wall Street Bulls Look Optimistic About Aquestive Therapeutics (AQST): Should You Buy?

Core Viewpoint - The average brokerage recommendation (ABR) for Aquestive Therapeutics (AQST) is 1.00, indicating a Strong Buy based on recommendations from four brokerage firms, all of which are Strong Buy [1][2]. Group 1: Brokerage Recommendations - The ABR of 1.00 is derived from four Strong Buy recommendations, representing 100% of the total recommendations [1]. - Despite the positive ABR, studies indicate that brokerage recommendations may not effectively guide investors in selecting stocks with the highest price increase potential [2][5]. - Brokerage firms often exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [2][3]. Group 2: Zacks Rank vs. ABR - The Zacks Rank is a quantitative model based on earnings estimate revisions, providing a more reliable indicator of near-term stock performance compared to the ABR [4][5]. - The Zacks Rank is displayed in whole numbers (1 to 5) and maintains a balance among the ranks, while the ABR is calculated based on brokerage recommendations and can include decimals [4][5]. - The Zacks Rank is updated more frequently, reflecting timely changes in earnings estimates, unlike the ABR which may not be current [6]. Group 3: Current Earnings Estimates for AQST - The Zacks Consensus Estimate for Aquestive Therapeutics remains unchanged at -$0.07 for the current year, suggesting steady analyst views on the company's earnings prospects [7]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for Aquestive Therapeutics, indicating a cautious approach despite the Buy-equivalent ABR [7].