Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Strategy (MSTR), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][10]. Brokerage Recommendations - Strategy has an average brokerage recommendation (ABR) of 1.50, indicating a consensus between Strong Buy and Buy, with 11 out of 14 recommendations classified as Strong Buy [2][5]. - Strong Buy and Buy recommendations account for 78.6% and 7.1% of all recommendations, respectively [2]. Limitations of Brokerage Recommendations - Studies indicate limited success of brokerage recommendations in guiding investors towards stocks with the best price increase potential [5]. - Analysts from brokerage firms tend to exhibit a strong positive bias due to vested interests, issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Zacks Rank Comparison - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to 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 timely and reflects changes in earnings estimates quickly, unlike the ABR, which may not be up-to-date [12]. Current Earnings Estimates for Strategy - The Zacks Consensus Estimate for Strategy has declined by 627.3% over the past month to -$15.73, 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 Strategy, suggesting caution despite the Buy-equivalent ABR [14].

Group 1 - Ouster, Inc. (OUST) has an average brokerage recommendation (ABR) of 1.57, indicating a consensus between Strong Buy and Buy based on seven brokerage firms' recommendations, with 71.4% being Strong Buy [2][4] - The ABR suggests a buying opportunity for Ouster, but relying solely on this information may not be advisable due to studies indicating brokerage recommendations often lack success in guiding investors towards stocks with high price appreciation potential [5][10] - Brokerage analysts tend to exhibit a strong positive bias in their ratings, with a ratio of five "Strong Buy" recommendations for every "Strong Sell," which may mislead investors regarding future stock price movements [6][10] Group 2 - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) and is based on earnings estimate revisions, making it a more effective indicator of near-term stock price performance compared to ABR [8][11] - The Zacks Consensus Estimate for Ouster has increased by 7.6% over the past month to -$1.58, reflecting analysts' growing optimism about the company's earnings prospects, which could lead to a potential stock price increase [13] - Ouster has received a Zacks Rank 2 (Buy) due to the recent change in consensus estimates and other related factors, suggesting that the Buy-equivalent ABR may serve as a useful guide for investors [14]

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on Eli Lilly (LLY), and highlights the potential misalignment of brokerage firms' interests with retail investors' needs [1][5][10]. Summary by Sections Brokerage Recommendations - Eli Lilly has an average brokerage recommendation (ABR) of 1.46, indicating a consensus between Strong Buy and Buy, based on 27 brokerage firms' recommendations [2]. - Out of the 27 recommendations, 20 are Strong Buy and 2 are Buy, which account for 74.1% and 7.4% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Solely relying on ABR for investment decisions may not be advisable, as studies suggest that brokerage recommendations often fail to guide investors effectively towards stocks with high price appreciation potential [5]. - Brokerage analysts tend to exhibit a strong positive bias due to their firms' vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. Comparison with Zacks Rank - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of a stock's near-term price performance compared to ABR [8][11]. - Unlike ABR, which is based on brokerage recommendations and may not be timely, the Zacks Rank reflects real-time changes in earnings estimates, making it a more current measure of potential price movements [12]. Current Earnings Estimates for Eli Lilly - The Zacks Consensus Estimate for Eli Lilly has decreased by 0.3% over the past month to $21.88, 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 Eli Lilly, suggesting caution despite the Buy-equivalent ABR [14].

Group 1: Brokerage Recommendations - McKesson currently has an average brokerage recommendation (ABR) of 1.47, indicating a rating between Strong Buy and Buy, based on recommendations from 17 brokerage firms, with 76.5% (13 out of 17) being Strong Buy [2][5] - Despite the positive ABR, relying solely on this information for investment decisions may not be advisable, as studies show brokerage recommendations often lack success in guiding investors towards stocks with significant price appreciation [5][10] - 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] Group 2: Zacks Rank vs. ABR - 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 compared to ABR [8][11] - Unlike ABR, which is based solely on brokerage recommendations and may not be up-to-date, the Zacks Rank reflects timely changes in earnings estimates, making it a more accurate predictor of future price movements [9][12] - The Zacks Consensus Estimate for McKesson has increased by 2% over the past month to $37.10, indicating growing optimism among analysts regarding the company's earnings prospects [13] Group 3: Investment Outlook for McKesson - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 2 (Buy) for McKesson, suggesting a favorable investment outlook [14]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Coca-Cola (KO), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][10]. Brokerage Recommendations for Coca-Cola - Coca-Cola has an average brokerage recommendation (ABR) of 1.13, indicating a consensus between Strong Buy and Buy, based on 24 brokerage firms [2]. - Out of the 24 recommendations, 22 are Strong Buy and 1 is Buy, which accounts for 91.7% and 4.2% of all recommendations respectively [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]. - Brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, resulting in a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][10]. Zacks Rank as an Alternative - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) and is based on earnings estimate revisions, which are correlated with near-term stock price movements [8][11]. - The Zacks Rank is updated more frequently than the ABR, making it a more timely indicator for predicting future stock prices [12]. Current Earnings Estimates for Coca-Cola - The Zacks Consensus Estimate for Coca-Cola's earnings has increased by 0.2% over the past month to $2.96, reflecting analysts' growing optimism about the company's earnings prospects [13]. - This increase in consensus estimates, along with other factors, has resulted in a Zacks Rank 2 (Buy) for Coca-Cola, suggesting a positive outlook for the stock [14].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Lowe's (LOW), and highlights the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank to make informed investment decisions [1][5][10]. Brokerage Recommendations - Lowe's has an average brokerage recommendation (ABR) of 1.78, indicating a consensus between Strong Buy and Buy, based on recommendations from 34 brokerage firms [2]. - Out of the 34 recommendations, 21 are classified as Strong Buy, accounting for 61.8%, while only one is classified as Buy, making up 2.9% of the total [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]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Zacks Rank vs. ABR - 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 compared to ABR [8][11]. - Unlike ABR, which is based solely on brokerage recommendations, the Zacks Rank is a quantitative model that reflects timely earnings estimate revisions, making it a more current predictor of stock prices [9][12]. Current Earnings Estimates for Lowe's - The Zacks Consensus Estimate for Lowe's has declined by 0.3% over the past month to $12.25, 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 Lowe's, suggesting caution despite the Buy-equivalent ABR [14].

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on Deckers (DECK), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like Zacks Rank for making informed investment decisions [1][5][10]. Summary by Sections Brokerage Recommendations - Deckers has an average brokerage recommendation (ABR) of 1.85, indicating a consensus between Strong Buy and Buy, based on 20 brokerage firms' recommendations [2]. - Out of the 20 recommendations, 11 are Strong Buy and 1 is Buy, which accounts for 55% and 5% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Solely relying on the ABR for investment decisions may not be advisable, as studies show that brokerage recommendations often fail to guide investors effectively towards stocks with high price appreciation potential [5]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Zacks Rank as an Alternative - Zacks Rank is presented as a more reliable tool, categorizing stocks into five groups based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is updated more frequently than the ABR, reflecting timely changes in analysts' earnings estimates [12]. Current Earnings Estimates for Deckers - The Zacks Consensus Estimate for Deckers has declined by 1.2% over the past month to $5.88, 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 Deckers, suggesting caution despite the Buy-equivalent ABR [14].

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on SentinelOne, and emphasizes the importance of using these recommendations in conjunction with other analytical tools like Zacks Rank for making informed investment decisions [1][5][10]. Group 1: Brokerage Recommendations - SentinelOne has an average brokerage recommendation (ABR) of 1.53, indicating a consensus between Strong Buy and Buy, based on 32 brokerage firms' recommendations [2]. - Out of the 32 recommendations, 23 are Strong Buy, accounting for 71.9%, while only one is a Buy, making up 3.1% of the total [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]. - Analysts often exhibit a positive bias in their ratings due to the vested interests of the brokerage firms, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][10]. Group 3: Zacks Rank as an Alternative - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, providing a more reliable indicator of near-term stock performance compared to ABR [8][11]. - The Zacks Rank is updated more frequently and reflects the latest earnings estimates, making it a timely tool for predicting future stock prices [12]. Group 4: Current Earnings Estimates for SentinelOne - The Zacks Consensus Estimate for SentinelOne's current year earnings remains unchanged at $0.18, suggesting stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, SentinelOne holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].

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?Let's take a look at what these Wall Street heavyweights have to say about Cisco Systems (CSCO) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Cisco currently has an average broker ...

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 Exxon Mobil (XOM) .Exxon currently has an average brokerage recom ...