Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Oneok Inc. (OKE), 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 - Oneok has an average brokerage recommendation (ABR) of 1.65, indicating a consensus between Strong Buy and Buy, based on recommendations from 17 brokerage firms [2][4]. - Out of the 17 recommendations, 11 are Strong Buy and 1 is Buy, which account for 64.7% and 5.9% of all recommendations, respectively [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the best price increase potential [5]. - Analysts often exhibit a positive bias due to the vested interests of brokerage firms, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. Zacks Rank as an Alternative - The Zacks Rank is presented as a more reliable indicator of a stock's near-term price performance, based on earnings estimate revisions rather than brokerage recommendations [8][11]. - The Zacks Rank is updated more frequently and reflects the latest earnings estimates, making it a timely tool for predicting future price movements [12]. Current Earnings Estimates for Oneok - The Zacks Consensus Estimate for Oneok's current year earnings remains unchanged at $5.23, suggesting stability in analysts' views regarding the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Oneok holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].

Core Viewpoint - Nike Inc is set to announce its fiscal fourth-quarter earnings report, with analysts predicting an EPS of 11 cents and revenue of $10.67 billion, while Raymond James maintains a "market perform" rating, indicating results may not be as poor as feared despite tariff concerns [1]. Financial Performance - Nike stock has a poor post-earnings history, with the stock declining after seven of the last eight earnings reports, including a 5.5% drop in March [2]. - The stock has been recovering since hitting a more than seven-year low of $52.28 on April 10, currently trading at $60.22, but is down 20.4% in 2025 [3]. Market Sentiment - Options traders have shown increased bullish sentiment, with a 50-day call/put volume ratio of 2.78, ranking higher than 94% of readings from the past year [5]. - Short interest has decreased by 18.5% in the last two weeks, with only 3.4% of the stock's total float currently sold short, indicating a potential for short covering [5].

Core Insights - Wall Street analysts' recommendations significantly influence investors' decisions regarding stock transactions, particularly for Okta (OKTA) [1][5] - Okta has an average brokerage recommendation (ABR) of 1.92, indicating a consensus between Strong Buy and Buy, with 21 Strong Buy and 2 Buy recommendations from 40 brokerage firms [2][14] Brokerage Recommendation Trends - The ABR for Okta suggests a buying opportunity, but reliance solely on this metric may not be advisable due to studies indicating limited success in guiding investors towards high-potential stocks [5][10] - Brokerage firms often exhibit a positive bias in their ratings, with a ratio of five Strong Buy recommendations for every Strong Sell, which may mislead investors [6][10] Zacks Rank vs. ABR - The Zacks Rank, a proprietary stock rating tool, is based on earnings estimate revisions and is considered a more reliable indicator of near-term price performance compared to ABR [8][11] - Zacks Rank is displayed in whole numbers (1 to 5) and is updated more frequently than ABR, which may not reflect the most current information [9][12] Investment Potential for Okta - The Zacks Consensus Estimate for Okta's earnings has increased by 12.2% over the past month, indicating growing analyst optimism and potential for stock price appreciation [13] - Okta currently holds a Zacks Rank 2 (Buy), suggesting that the Buy-equivalent ABR may serve as a useful guide for investors [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? Let's take a look at what these Wall Street heavyweights have to say about MPLX LP (MPLX) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Are you wondering why? The vested interest of brokerage firms ...

Core Viewpoint - The average brokerage recommendation (ABR) for Onto Innovation (ONTO) is 1.88, indicating a consensus between Strong Buy and Buy, based on recommendations from eight brokerage firms [2]. Brokerage Recommendations - The current ABR of 1.88 is derived from four Strong Buy and one Buy recommendations, which account for 50% and 12.5% of all recommendations respectively [2]. - Despite the positive ABR, reliance solely on brokerage recommendations for investment decisions may not be prudent, as studies indicate limited success in guiding investors towards stocks with the best price increase potential [5]. Analyst Bias and Reliability - Brokerage analysts often exhibit a strong positive bias in their ratings due to vested interests, with research showing that for every "Strong Sell" recommendation, there are five "Strong Buy" recommendations [6]. - This misalignment of interests suggests that brokerage recommendations may not provide reliable insights into future stock price movements [7]. 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, which have a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is more timely and reflects current business trends, unlike the ABR, which may not be up-to-date [12]. Current Earnings Estimates for Onto Innovation - The Zacks Consensus Estimate for Onto Innovation has declined by 3.4% over the past month to $5.14, indicating growing pessimism among analysts regarding the company's earnings prospects [13]. - This decline in earnings estimates has resulted in a Zacks Rank of 4 (Sell) for Onto Innovation, suggesting caution despite the Buy-equivalent ABR [14].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Teradyne (TER), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][5][10]. Group 1: Brokerage Recommendations for Teradyne - Teradyne has an average brokerage recommendation (ABR) of 1.93, indicating a consensus between Strong Buy and Buy, with 60% of recommendations being Strong Buy and 6.7% being Buy [2][4]. - The article suggests that relying solely on the ABR for investment decisions may not be advisable, as studies indicate that brokerage recommendations often fail to guide investors effectively [5][10]. Group 2: Limitations of Brokerage Recommendations - Brokerage analysts tend to exhibit a strong positive bias in their ratings due to vested interests, resulting in a disproportionate number of favorable ratings compared to negative ones [6][10]. - The article emphasizes that the best use of brokerage recommendations is to validate independent research rather than as a primary decision-making tool [7][10]. Group 3: Zacks Rank vs. ABR - Zacks Rank is presented as a more reliable tool for predicting stock performance, based on earnings estimate revisions, and is categorized into five groups from Strong Buy to Strong Sell [8][11]. - Unlike ABR, which may not be up-to-date, Zacks Rank reflects timely changes in earnings estimates, making it a more effective indicator for future stock prices [12]. Group 4: Current Earnings Estimates for Teradyne - The Zacks Consensus Estimate for Teradyne remains unchanged at $3.16 for the current year, suggesting stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Teradyne holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent 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?Let's take a look at what these Wall Street heavyweights have to say about RTX (RTX) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.RTX currently has an average brokerage ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?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 MicroStrategy (MSTR) .MicroStrategy currently has an average brokerage rec ...

Core Viewpoint - The average brokerage recommendation (ABR) for Sweetgreen, Inc. (SG) is 2.00, indicating a "Buy" rating based on 13 brokerage firms' recommendations [2]. Brokerage Recommendation Trends - The ABR of 2.00 is derived from six "Strong Buy" and one "Buy" recommendations, which account for 46.2% and 7.7% of all recommendations, respectively [2]. - Despite the positive ABR, reliance solely on brokerage recommendations for investment decisions may not be wise, as studies show limited success in guiding investors to stocks with the best price increase potential [5]. Analyst Bias and Reliability - Brokerage analysts often exhibit a strong positive bias in their ratings due to vested interests, with research indicating that for every "Strong Sell" recommendation, there are five "Strong Buy" recommendations [6][10]. - This misalignment of interests can mislead investors, making it essential to use brokerage recommendations to validate independent research rather than as the sole basis for investment decisions [7]. Zacks Rank Comparison - The 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 the ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while the ABR may not be up-to-date [9][12]. Current Earnings Estimates for Sweetgreen - The Zacks Consensus Estimate for Sweetgreen remains unchanged at -$0.62 for the current year, indicating steady analyst views on the company's earnings prospects [13]. - This stability has resulted in a Zacks Rank of 3 (Hold) for Sweetgreen, suggesting caution despite the Buy-equivalent ABR [14].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Super Group (SGHC) Limited, and highlights the importance of using these recommendations in conjunction with other research tools like the Zacks Rank to make informed investment decisions [1][5]. Group 1: Brokerage Recommendations - Super Group (SGHC) has an average brokerage recommendation (ABR) of 1.17, indicating a consensus between Strong Buy and Buy, with 83.3% of recommendations being Strong Buy and 16.7% being Buy [2]. - The article suggests that relying solely on brokerage recommendations may not be wise, as studies indicate they 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 indicator of a stock's near-term price performance, driven by earnings estimate revisions, while the ABR is based solely on brokerage recommendations [8][11]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, contrasting with the potentially outdated nature of the ABR [13]. Group 3: Earnings Estimates for SGHC - The Zacks Consensus Estimate for Super Group (SGHC) remains unchanged at $0.51 for the current year, suggesting stable analyst views on the company's earnings prospects [14]. - Due to the unchanged consensus estimate and other factors, Super Group (SGHC) holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [15].