Workflow
Brokerage Recommendation
icon
Search documents
Wall Street Analysts See Snowflake (SNOW) as a Buy: Should You Invest?
ZACKSยท 2025-08-11 14:31
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Snowflake Inc. (SNOW), 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]. Brokerage Recommendations - Snowflake currently has an average brokerage recommendation (ABR) of 1.48, indicating a consensus between Strong Buy and Buy, based on recommendations from 44 brokerage firms [2]. - Out of the 44 recommendations, 34 are classified as Strong Buy, while 3 are classified as Buy, representing 77.3% and 6.8% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations often show limited success in guiding investors towards stocks with the highest price increase potential [5]. - Analysts from brokerage firms tend to exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell recommendations [6][10]. Zacks Rank as an Alternative - Zacks Rank categorizes 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, making it a more timely indicator of future price movements [12]. Current Earnings Estimates for Snowflake - The Zacks Consensus Estimate for Snowflake's current year earnings remains unchanged at $1.06, suggesting stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Snowflake holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].
Gray Media (GTN) Is Considered a Good Investment by Brokers: Is That True?
ZACKSยท 2025-08-08 14:30
Core Viewpoint - Analyst recommendations, particularly for Gray Media (GTN), are often influential in stock price movements, but their reliability is questionable [1][5][10] Brokerage Recommendations - Gray Media has an average brokerage recommendation (ABR) of 1.80, indicating a position between Strong Buy and Buy, with 60% of the five recommendations being Strong Buy [2][5] - Despite the positive ABR, relying solely on this information for investment decisions may not be prudent, as studies show limited success of brokerage recommendations in identifying stocks with high price increase potential [5][10] Analyst Bias and Limitations - Brokerage analysts tend to exhibit a strong positive bias in their ratings, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [6][10] - The interests of brokerage firms may not align with those of retail investors, leading to misleading insights regarding future stock price movements [7][10] Zacks Rank vs. ABR - The Zacks Rank, which is based on earnings estimate revisions, is a more reliable indicator of near-term stock performance compared to ABR, which is solely based on brokerage recommendations [8][9][11] - Zacks Rank is timely and reflects current business trends, while ABR may not be up-to-date [12] Earnings Estimates for Gray Media - The Zacks Consensus Estimate for Gray Media has declined by 2.8% over the past month to -$0.74, 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 Gray Media, suggesting caution despite the Buy-equivalent ABR [14]
Wall Street Analysts See Disney (DIS) as a Buy: Should You Invest?
ZACKSยท 2025-08-07 14:32
Let's take a look at what these Wall Street heavyweights have to say about Walt Disney (DIS) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Disney currently has an average brokerage recommendation (ABR) of 1.41, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 28 brokerage firms. An ABR of 1.41 approximates between Strong Buy and Buy. Of the 28 recommendations that derive th ...
Wall Street Analysts See MasterCard (MA) as a Buy: Should You Invest?
ZACKSยท 2025-08-07 14:32
Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on MasterCard (MA), and highlights the differences between average brokerage recommendations (ABR) and Zacks Rank as tools for investors [1][5]. Group 1: Brokerage Recommendations for MasterCard - MasterCard has an average brokerage recommendation (ABR) of 1.47, indicating a position between Strong Buy and Buy, based on recommendations from 38 brokerage firms [2]. - Out of the 38 recommendations, 27 are Strong Buy and 4 are Buy, which account for 71.1% and 10.5% of all recommendations respectively [2]. Group 2: Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations for investment decisions may not be advisable, as studies show they 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, with five "Strong Buy" recommendations for every "Strong Sell" recommendation, indicating a misalignment of interests between these firms and retail investors [6][10]. Group 3: Zacks Rank as an Alternative - Zacks Rank is presented as a more effective tool for predicting stock price movements, categorizing stocks into five groups based on earnings estimate revisions, which have shown a strong correlation with near-term stock price changes [8][11]. - The Zacks Consensus Estimate for MasterCard has increased by 1.9% over the past month to $16.29, reflecting analysts' growing optimism about the company's earnings prospects [13]. Group 4: Current Investment Outlook for MasterCard - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 2 (Buy) for MasterCard, suggesting that the Buy-equivalent ABR may serve as a useful guide for investors [14].
Should You Invest in Sprouts Farmers (SFM) Based on Bullish Wall Street Views?
ZACKSยท 2025-08-06 14:31
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 Sprouts Farmers (SFM) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Sprouts Farmers currently ...
Wall Street Analysts See Howmet (HWM) as a Buy: Should You Invest?
ZACKSยท 2025-08-06 14:31
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 Howmet (HWM) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. The ABR suggests buying Howmet, but making ...
CRH (CRH) Is Considered a Good Investment by Brokers: Is That True?
ZACKSยท 2025-08-06 14:31
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on CRH, and emphasizes the importance of validating these recommendations with other indicators like the Zacks Rank [1][5]. Brokerage Recommendations for CRH - CRH has an average brokerage recommendation (ABR) of 1.39, indicating a consensus between Strong Buy and Buy, based on 19 brokerage firms [2]. - Among the 19 recommendations, 14 are Strong Buy and 2 are Buy, accounting for 73.7% and 10.5% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Solely relying 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 favorable ratings compared to negative ones [6][10]. Zacks Rank as an Alternative Indicator - The Zacks Rank, which classifies stocks into five groups based on earnings estimate revisions, is presented as a more reliable indicator of near-term price performance compared to ABR [8][11]. - The Zacks Rank is updated more frequently and reflects changes in earnings estimates, making it a timely indicator of future price movements [13]. Current Earnings Estimates for CRH - The Zacks Consensus Estimate for CRH's current year earnings has declined by 2% over the past month to $5.59, indicating growing pessimism among analysts regarding the company's earnings prospects [14]. - This decline in earnings estimates has resulted in a Zacks Rank of 4 (Sell) for CRH, suggesting caution despite the Buy-equivalent ABR [15].
Should You Invest in Eaton (ETN) Based on Bullish Wall Street Views?
ZACKSยท 2025-07-31 14:32
Eaton currently has an average brokerage recommendation (ABR) of 1.70, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.70 approximates between Strong Buy and Buy. Of the 23 recommendations that derive the current ABR, 14 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 60.9% and 8.7% of all recommendations. Brokerage Recommendation Trends for ETN The recommendations of ...
Wall Street Analysts See Veeva (VEEV) as a Buy: Should You Invest?
ZACKSยท 2025-07-31 14:32
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 Veeva Systems (VEEV) . Veeva currently has an average brokerage recommendation (ABR) of 1.97, ...
Should You Invest in Alibaba (BABA) Based on Bullish Wall Street Views?
ZACKSยท 2025-07-31 14:31
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 Alibaba (BABA) . Alibaba currently has an average brokerage recommendation (ABR) of 1.14, on a ...