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Wall Street Analysts Look Bullish on Roku (ROKU): Should You Buy?
ZACKS· 2025-10-06 14:30
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Roku (ROKU), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for making investment decisions [1][5]. Brokerage Recommendations for Roku - Roku has an average brokerage recommendation (ABR) of 1.84, indicating a consensus between Strong Buy and Buy, based on recommendations from 30 brokerage firms [2]. - Out of the 30 recommendations, 17 are classified as Strong Buy and 2 as Buy, representing 56.7% and 6.7% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - The article highlights that relying solely on brokerage recommendations may not be wise, as studies show limited success in guiding investors towards stocks with the best price increase potential [5]. - Analysts from brokerage firms often exhibit a strong positive bias due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell recommendations [6][10]. Comparison with Zacks Rank - 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]. - Unlike the ABR, which is based solely on brokerage recommendations, the Zacks Rank utilizes a quantitative model that reflects earnings estimate revisions, providing a more timely and balanced assessment of stock performance [9][12]. Current Earnings Estimates for Roku - The Zacks Consensus Estimate for Roku's current year earnings remains unchanged at $0.12, indicating steady analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Roku holds a Zacks Rank of 3 (Hold), suggesting caution despite the Buy-equivalent ABR [14].
Archrock Inc. (AROC) Is Considered a Good Investment by Brokers: Is That True?
ZACKS· 2025-09-22 14:31
Core Viewpoint - Wall Street analysts' recommendations, while influential on stock prices, may not reliably guide investors in selecting stocks with the highest potential for price appreciation [3][4][8]. Summary by Sections Brokerage Recommendations - Archrock Inc. (AROC) has an average brokerage recommendation (ABR) of 1.60, indicating a position between Strong Buy and Buy, based on recommendations from 10 brokerage firms [2]. - The breakdown of recommendations shows six as Strong Buy (60%) and two as Buy (20%) [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations often lack success in guiding investors towards stocks with significant price appreciation potential [3]. - Analysts from brokerage firms tend to exhibit a positive bias due to vested interests, resulting in a disproportionate number of favorable ratings compared to negative ones [4][8]. Zacks Rank as an Alternative - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which correlate strongly with near-term stock price movements [6][9]. - The Zacks Rank is distinct from ABR, as it is a quantitative model rather than solely based on brokerage recommendations [7]. Current Earnings Estimates for Archrock Inc. - The Zacks Consensus Estimate for Archrock Inc. remains unchanged at $1.57 for the current year, suggesting stable analyst views on the company's earnings prospects [11]. - The Zacks Rank for Archrock Inc. is currently 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [12].
Should You Invest in Workday (WDAY) Based on Bullish Wall Street Views?
ZACKS· 2025-09-19 14:31
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Workday (WDAY), and emphasizes the importance of validating these recommendations with other indicators like the Zacks Rank [1][5]. Brokerage Recommendations - Workday has an average brokerage recommendation (ABR) of 1.59, indicating a consensus between Strong Buy and Buy, based on 39 brokerage firms [2]. - Out of the 39 recommendations, 26 are Strong Buy (66.7%) and 3 are Buy (7.7%) [2]. Limitations of Brokerage Recommendations - Solely relying on ABR for investment decisions may not be wise, as studies show limited success in guiding investors towards stocks with the best price increase potential [5]. - Analysts from brokerage firms often exhibit a strong positive bias due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][10]. Zacks Rank as an Alternative - The Zacks Rank, which classifies stocks from 1 (Strong Buy) to 5 (Strong Sell), is presented as a more reliable indicator of near-term price performance, driven by earnings estimate revisions [8][11]. - The Zacks Rank is timely and reflects the latest earnings estimates, unlike the ABR, which may not be up-to-date [13]. Workday's Earnings Estimates - The Zacks Consensus Estimate for Workday's current year earnings has increased by 7.5% over the past month to $8.84, indicating growing optimism among analysts [14]. - The recent change in consensus estimates, along with other factors, has resulted in a Zacks Rank 1 (Strong Buy) for Workday, suggesting a potential for stock price appreciation [15].
Brokers Suggest Investing in Chipotle (CMG): Read This Before Placing a Bet
ZACKS· 2025-08-26 14:30
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Chipotle Mexican Grill (CMG), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][5][10]. Brokerage Recommendations - Chipotle has an average brokerage recommendation (ABR) of 1.56, indicating a position between Strong Buy and Buy, based on recommendations from 33 brokerage firms [2]. - Out of the 33 recommendations, 22 are classified as Strong Buy (66.7%) and 3 as Buy (9.1%) [2]. Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations for investment decisions may not be advisable, as studies indicate they often fail to guide investors effectively towards stocks with high price appreciation potential [5][10]. - Brokerage analysts 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]. Zacks Rank as an Alternative - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is distinct from ABR, as it is a quantitative model that reflects timely earnings estimates, while ABR may not always be up-to-date [9][12]. Current Earnings Estimates for Chipotle - The Zacks Consensus Estimate for Chipotle's current year earnings remains unchanged at $1.21, suggesting analysts have steady views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Chipotle holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].
Brokers Suggest Investing in Cardinal (CAH): Read This Before Placing a Bet
ZACKS· 2025-08-13 14:31
Core Viewpoint - The average brokerage recommendation (ABR) for Cardinal Health (CAH) is 1.43, indicating a strong buy sentiment from analysts, but reliance solely on this metric may not be prudent due to potential biases in brokerage recommendations [2][10]. Brokerage Recommendations - Cardinal Health has an ABR of 1.43, which is close to a strong buy, based on recommendations from 14 brokerage firms, with 11 of those being strong buy, representing 78.6% of all recommendations [2]. - Brokerage analysts tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [6][10]. 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, making it a more reliable indicator of near-term stock performance compared to ABR [8][11]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, unlike the ABR, which may not be current [12]. Earnings Estimates - The Zacks Consensus Estimate for Cardinal Health has increased by 0.7% over the past month to $9.21, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 2 (Buy) for Cardinal Health, suggesting a favorable outlook for the stock [14].
Brokers Suggest Investing in Merck (MRK): Read This Before Placing a Bet
ZACKS· 2025-07-16 14:31
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Merck (MRK), and highlights the potential misalignment of interests between brokerage firms and retail investors [1][5][10]. Brokerage Recommendations for Merck - Merck has an average brokerage recommendation (ABR) of 1.92, indicating a consensus between Strong Buy and Buy, based on 25 brokerage firms [2]. - Out of the 25 recommendations, 13 are Strong Buy (52%) and 1 is Buy (4%) [2]. Limitations of Brokerage Recommendations - The article suggests that relying solely on brokerage recommendations may not be wise, as studies indicate limited success in guiding investors towards stocks with the best price increase potential [5]. - Brokerage firms often 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]. Zacks Rank as an Alternative - Zacks Rank, a proprietary stock rating tool, categorizes stocks into five groups and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is distinct from ABR, as it is a quantitative model that reflects timely earnings estimates, while ABR may not be up-to-date [9][12]. Current Earnings Estimates for Merck - The Zacks Consensus Estimate for Merck's earnings has declined by 0.9% over the past month to $8.85, indicating growing pessimism among analysts regarding the company's earnings prospects [13]. - This decline in consensus estimates has resulted in a Zacks Rank of 4 (Sell) for Merck, suggesting caution despite the favorable ABR [14].
Is It Worth Investing in Wingstop (WING) Based on Wall Street's Bullish Views?
ZACKS· 2025-07-07 14:31
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].
Brokers Suggest Investing in Norwegian Cruise Line (NCLH): Read This Before Placing a Bet
ZACKS· 2025-07-07 14:31
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].
Is It Worth Investing in CyberArk (CYBR) Based on Wall Street's Bullish Views?
ZACKS· 2025-06-27 14:31
Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable due to potential biases from brokerage firms [1][5][10]. Brokerage Recommendations for CyberArk - CyberArk has an average brokerage recommendation (ABR) of 1.13, indicating a consensus between Strong Buy and Buy, based on 32 brokerage firms [2]. - Out of the 32 recommendations, 29 are Strong Buy and 2 are Buy, which accounts for 90.6% and 6.3% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Sole reliance on brokerage recommendations for investment decisions may not be wise, as studies show limited success in guiding investors towards stocks with the best price increase potential [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 [6][10]. Zacks Rank as an Alternative Indicator - The Zacks Rank, which classifies stocks from 1 (Strong Buy) to 5 (Strong Sell), is based on earnings estimate revisions and is considered a reliable indicator of near-term price performance [8][11]. - The Zacks Rank is updated more frequently than the ABR, making it a timely tool for predicting future stock prices [12]. Earnings Estimate Revisions for CyberArk - The Zacks Consensus Estimate for CyberArk has increased by 41.9% over the past month to $3.81, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - This increase in consensus estimates has resulted in a Zacks Rank 2 (Buy) for CyberArk, suggesting a positive outlook for the stock [14].
Brokers Suggest Investing in Bank of America (BAC): Read This Before Placing a Bet
ZACKS· 2025-06-24 14:31
Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable due to potential biases from brokerage firms [1][5][10]. Group 1: Bank of America (BAC) Recommendations - Bank of America has an average brokerage recommendation (ABR) of 1.26, indicating a consensus between Strong Buy and Buy, with 76% of recommendations being Strong Buy and 20% being Buy [2]. - The ABR is based on recommendations from 25 brokerage firms, with 19 Strong Buy and 5 Buy recommendations [2]. Group 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 analysts often exhibit a strong positive bias due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][10]. - The best use of brokerage recommendations is to validate independent research rather than solely rely on them for investment decisions [7]. Group 3: Zacks Rank as an Alternative - The Zacks Rank is a proprietary stock rating tool that classifies stocks into five groups based on earnings estimate revisions, providing a more reliable indicator of near-term price performance [8][11]. - Unlike the ABR, the Zacks Rank is updated frequently to reflect changes in earnings estimates, making it a timely indicator of future price movements [13]. - Bank of America currently holds a Zacks Rank of 3 (Hold), with an unchanged consensus estimate of $3.68 for the current year, suggesting cautious investment consideration [14][15].