Group 1: Price Targets and Analyst Consensus - The mean price target estimate for Legacy Housing (LEGH) is 23.09, with the lowest estimate at 33 suggesting a 42.9% increase [1][6] - A low standard deviation of $3.30 in price targets indicates a high degree of agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [1][9] - Analysts have shown strong agreement in revising earnings per share (EPS) estimates higher, which correlates with positive stock price movements, suggesting a legitimate reason to expect an upside in LEGH [10] Group 2: Analyst Ratings and Market Sentiment - LEGH holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside in the near term [5] - Over the past 30 days, the Zacks Consensus Estimate for LEGH's current year has increased by 12.8%, with one estimate moving higher and no negative revisions, reflecting growing optimism among analysts [15] Group 3: Caution on Price Targets - While price targets are often sought after by investors, their reliability as indicators of stock price movements is questionable, and decisions based solely on them may lead to disappointing returns [4][12] - Empirical research suggests that price targets set by analysts, regardless of agreement, rarely indicate the actual direction of a stock's price [8]
Wall Street Analysts Think Legacy Housing (LEGH) Could Surge 26.68%: Read This Before Placing a Bet