Ardmore Shipping (ASC) Is Considered a Good Investment by Brokers: Is That True?

Core Viewpoint - The average brokerage recommendation (ABR) for Ardmore Shipping (ASC) is 1.00, indicating a Strong Buy, based on three brokerage firms' recommendations, all of which are Strong Buy [1][2] Group 1: Brokerage Recommendations - Brokerage recommendations often exhibit a strong positive bias due to the vested interests of the firms, leading to a higher number of Strong Buy ratings compared to Strong Sell ratings [2][3] - The ABR is calculated solely from brokerage recommendations, which may not accurately reflect the stock's potential for price appreciation [2][4] Group 2: Zacks Rank vs. ABR - Zacks Rank is a quantitative model based on earnings estimate revisions, providing a more reliable indicator of near-term stock performance compared to ABR [4][5] - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, while ABR may not be current [5] Group 3: Current Earnings Estimates for Ardmore Shipping - The Zacks Consensus Estimate for Ardmore Shipping remains unchanged at $2.60 for the current year, indicating steady analyst views on earnings prospects [6] - Due to the unchanged consensus estimate and other factors, Ardmore Shipping holds a Zacks Rank of 3 (Hold), suggesting caution despite the Buy-equivalent ABR [6]