Core Viewpoint - The average brokerage recommendation (ABR) for Okta (OKTA) is 2.00, indicating a Buy, based on recommendations from 41 brokerage firms [2]. Brokerage Recommendations - The ABR of 2.00 is derived from 21 Strong Buy and 2 Buy recommendations, which account for 51.2% and 4.9% of all recommendations respectively [2]. - Despite the positive ABR, relying solely on brokerage recommendations may not be advisable, as studies show they often fail to guide investors effectively [5][10]. Analyst Bias - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - This misalignment of interests can lead to misleading guidance for retail investors [7][10]. Zacks Rank Comparison - Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, showing a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is distinct from ABR, as it is a quantitative model reflecting timely earnings estimates, while ABR may not be up-to-date [9][12]. Current Earnings Estimates - The Zacks Consensus Estimate for Okta's current year earnings remains unchanged at $3.28, indicating steady analyst views on the company's earnings prospects [13]. - This stability has resulted in a Zacks Rank 3 (Hold) for Okta, suggesting caution despite the Buy-equivalent ABR [14].

Core Viewpoint - Wall Street analysts' recommendations significantly influence investor decisions, but their reliability is questionable, particularly for Sterling Infrastructure (STRL) [1][5]. Group 1: Brokerage Recommendations - Sterling Infrastructure has an average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy based on three brokerage firms' recommendations, all of which are Strong Buy [2]. - The ABR suggests a favorable outlook for Sterling Infrastructure, but relying solely on this metric may not be advisable due to the historical ineffectiveness of brokerage recommendations in predicting stock price appreciation [5][10]. Group 2: Analyst Bias and Zacks Rank - Brokerage analysts often exhibit a strong positive bias in their ratings, with a tendency to issue five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of near-term stock performance compared to the ABR [8][11]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, unlike the ABR, which may not always be current [13]. Group 3: Current Earnings Estimates and Recommendations - The Zacks Consensus Estimate for Sterling Infrastructure remains unchanged at $8.61, suggesting stable analyst views on the company's earnings prospects [14]. - Due to the unchanged consensus estimate and other factors, Sterling Infrastructure currently holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [15].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Wingstop (WING), 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]. Brokerage Recommendations - Wingstop has an average brokerage recommendation (ABR) of 1.59, indicating a consensus between Strong Buy and Buy, based on recommendations from 23 brokerage firms [2]. - Out of the 23 recommendations, 15 are classified as Strong Buy and 2 as Buy, which represent 65.2% and 8.7% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the highest price increase potential [5]. - Brokerage firms often exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][10]. Zacks Rank vs. ABR - The Zacks Rank is a proprietary tool that classifies stocks based on earnings estimate revisions, providing a more reliable indicator of near-term price performance compared to ABR [8][11]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, while ABR may not always be current [12]. Current Earnings Estimates for Wingstop - The Zacks Consensus Estimate for Wingstop's earnings for the current year remains unchanged at $3.9, suggesting stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Wingstop holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].

Core Viewpoint - The average brokerage recommendation (ABR) for Norwegian Cruise Line (NCLH) is 1.64, indicating a general suggestion to buy the stock, but reliance solely on this metric may not be advisable due to potential biases in brokerage recommendations [2][5][10]. Group 1: Brokerage Recommendations - NCLH has an ABR of 1.64, which is between Strong Buy and Buy, based on recommendations from 22 brokerage firms, with 15 of those being Strong Buy, representing 68.2% of all recommendations [2]. - Despite the positive ABR, studies suggest that brokerage recommendations often do not effectively guide investors toward stocks with the highest potential for price appreciation [5][10]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. Group 2: Zacks Rank vs. ABR - The Zacks Rank, which ranges from 1 (Strong Buy) to 5 (Strong Sell), is a quantitative model based on earnings estimate revisions and is considered a more reliable indicator of near-term stock performance compared to ABR [8][9]. - The Zacks Rank is updated more frequently and reflects changes in earnings estimates promptly, making it a timely tool for predicting future price movements [13]. - For NCLH, the Zacks Consensus Estimate for the current year has decreased by 0.1% to $2.03, indicating growing pessimism among analysts regarding the company's earnings prospects [14]. Group 3: Current Investment Outlook - The recent decline in the consensus estimate and other related factors have resulted in a Zacks Rank of 5 (Strong Sell) for NCLH, suggesting caution despite the Buy-equivalent ABR [15].

Core Viewpoint - The average brokerage recommendation (ABR) for Synopsys (SNPS) is 1.26, indicating a strong buy sentiment from analysts, but reliance solely on this metric may not be advisable due to potential biases in brokerage recommendations [2][5][10]. Brokerage Recommendations - Synopsys has an ABR of 1.26, with 16 out of 19 recommendations classified as Strong Buy, accounting for 84.2% of total recommendations [2]. - The remaining recommendations include one classified as Buy, which accounts for 5.3% [2]. Limitations of Brokerage Recommendations - Brokerage analysts tend to exhibit a strong positive bias in their ratings, often issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - This bias may mislead investors, as the interests of brokerage firms do not always align with those of retail investors [7][10]. Comparison with Zacks Rank - The Zacks Rank, which is based on earnings estimate revisions, is a more reliable indicator of a stock's near-term price performance compared to ABR [8][11]. - Zacks Rank is displayed in whole numbers and is updated more frequently, reflecting timely changes in earnings estimates [9][12]. Current Earnings Estimates for Synopsys - The Zacks Consensus Estimate for Synopsys remains unchanged at $15.09 for the current year, suggesting stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Synopsys holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the positive ABR [14].

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Gray Media (GTN) .Gray Media currently has an average brokerage r ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on ARKO Corp. (ARKO), and emphasizes the importance of using these recommendations in conjunction with other research tools like the Zacks Rank to make informed investment decisions [1][5][10]. Group 1: Brokerage Recommendations - ARKO has an average brokerage recommendation (ABR) of 2.00, indicating a Buy, based on recommendations from four brokerage firms, with two of them being Strong Buy, representing 50% of the total recommendations [2]. - Despite the positive ABR, the article cautions against making investment decisions solely based on this metric, as studies show limited success 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 vs. ABR - The Zacks Rank is presented as a more reliable indicator of a stock's near-term price performance, classifying stocks into five groups from Strong Buy to Strong Sell, based on earnings estimate revisions [8][11]. - Unlike the ABR, which is based solely on brokerage recommendations, the Zacks Rank is a quantitative model that reflects timely changes in earnings estimates, making it a more current indicator of future price movements [9][12]. - The Zacks Consensus Estimate for ARKO has remained unchanged at $0.08 over the past month, suggesting that analysts have steady views on the company's earnings prospects [13]. Group 3: Investment Outlook for ARKO - The recent consensus estimate changes and other related factors have resulted in a Zacks Rank 3 (Hold) for ARKO, indicating a cautious approach despite the Buy-equivalent ABR [14].

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about OneSpan (OSPN) .OneSpan currently has an average brokerage recommendation (ABR) of 2.00, on a s ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Abercrombie & Fitch (ANF) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Abercrombie currently has an average brokerage recomm ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Emcor Group (EME) .Emcor Group currently has an average brokerage recommendation (ABR) of 1.89, ...