Core Viewpoint - The average brokerage recommendation (ABR) for United Parcel Service (UPS) is 1.87, indicating a general suggestion to buy, but reliance solely on this metric may not be advisable due to potential biases in brokerage recommendations [2][4]. Brokerage Recommendation Analysis - UPS has an ABR of 1.87, which is between Strong Buy and Buy, based on recommendations from 29 brokerage firms, with 18 of those being Strong Buy, representing 62.1% of total recommendations [2]. - Brokerage recommendations often exhibit a positive bias due to the vested interests of the firms, leading to a disproportionate number of Strong Buy ratings compared to Strong Sell ratings [5][9]. - The interests of brokerage firms may not align with those of retail investors, suggesting that these recommendations should be used to complement personal analysis rather than as standalone guidance [6]. 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 are more indicative of near-term stock price movements compared to ABR [7][10]. - The Zacks Rank is updated more frequently than ABR, reflecting timely changes in earnings estimates, making it a more reliable indicator for future price movements [11]. Current Earnings Outlook for UPS - The Zacks Consensus Estimate for UPS's current year earnings has declined by 1.8% over the past month to $7.81, indicating growing pessimism among analysts regarding the company's earnings prospects [12]. - Due to the recent decline in earnings estimates and other related factors, UPS has received a Zacks Rank of 4 (Sell), suggesting caution despite the favorable ABR [13].

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 Coca-Cola (KO) .Coca-Cola currently has an average brokerage reco ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Ross Stores (ROST), and highlights the potential misalignment of interests between brokerage firms and retail investors [1][4][9]. Brokerage Recommendation Summary - Ross Stores has an average brokerage recommendation (ABR) of 1.70, indicating a consensus between Strong Buy and Buy, based on 23 brokerage firms' recommendations [2]. - Out of the 23 recommendations, 15 are classified as Strong Buy, accounting for 65.2% of the total recommendations [2]. Zacks Rank vs. ABR - 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 effective indicator of near-term stock performance compared to ABR [7][10]. - Unlike ABR, which is based solely on brokerage recommendations and may not be up-to-date, Zacks Rank reflects timely changes in earnings estimates, providing a more accurate indication of future price movements [8][11]. Earnings Estimate Trends for Ross Stores - The Zacks Consensus Estimate for Ross Stores has decreased by 4% over the past month to $6.43, indicating growing pessimism among analysts regarding the company's earnings prospects [12]. - This decline in earnings estimates has contributed to a Zacks Rank of 4 (Sell) for Ross Stores, suggesting caution despite the favorable ABR [13].