Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on AZZ, and emphasizes the importance of using these recommendations in conjunction with other analytical tools for making investment decisions [1][5][10]. Group 1: Brokerage Recommendations for AZZ - AZZ has an average brokerage recommendation (ABR) of 1.67, indicating a position between Strong Buy and Buy, based on recommendations from nine brokerage firms [2]. - Out of the nine recommendations, six are classified as Strong Buy, accounting for 66.7% of the total recommendations [2]. Group 2: Limitations of Brokerage Recommendations - Brokerage recommendations may not effectively guide investors towards stocks with the highest potential for price appreciation, as studies suggest limited success in this regard [5]. - Analysts from 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 recommendations [6][10]. Group 3: Zacks Rank as an Alternative Tool - The Zacks Rank, which categorizes stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), is presented as a more reliable indicator of near-term stock performance, based on earnings estimate revisions [8][11]. - Unlike the ABR, the Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, making it a more effective tool for predicting future stock prices [12]. Group 4: Current Earnings Estimates for AZZ - The Zacks Consensus Estimate for AZZ's earnings for the current year remains unchanged at $5.73, indicating steady analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, AZZ holds a Zacks Rank of 3 (Hold), suggesting caution despite the Buy-equivalent ABR [14].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on ConocoPhillips (COP), and highlights the disparity between brokerage ratings and actual stock performance, suggesting that investors should be cautious in relying solely on these recommendations [1][5][10]. Group 1: Brokerage Recommendations for ConocoPhillips - ConocoPhillips has an average brokerage recommendation (ABR) of 1.39, indicating a consensus between Strong Buy and Buy, based on 27 brokerage firms [2]. - Out of the 27 recommendations, 19 are classified as Strong Buy, while five are classified as Buy, representing 70.4% and 18.5% of total recommendations respectively [2]. Group 2: Limitations of Brokerage Recommendations - The article notes that brokerage recommendations often exhibit a strong positive bias due to the vested interests of the firms, leading to a disproportionate number of Strong Buy ratings compared to Strong Sell ratings [6][10]. - It is suggested that brokerage recommendations may not effectively guide investors towards stocks with the highest potential for price appreciation [5][10]. Group 3: Zacks Rank as an Alternative - Zacks Rank is presented as a more reliable tool for stock evaluation, categorizing stocks based on earnings estimate revisions, which are strongly correlated with near-term stock price movements [8][11]. - The Zacks Rank is distinct from ABR, as it is based on quantitative models rather than solely on brokerage recommendations, and is updated more frequently to reflect current market conditions [9][12]. Group 4: Current Outlook for ConocoPhillips - The Zacks Consensus Estimate for ConocoPhillips has decreased by 4.7% over the past month, now standing at $6.21, indicating growing pessimism among analysts regarding the company's earnings prospects [13]. - Due to the recent decline in earnings estimates, ConocoPhillips has received a Zacks Rank of 5 (Strong Sell), suggesting that the previously favorable ABR should be viewed with skepticism [14].

Core Insights - The average brokerage recommendation (ABR) for Okta (OKTA) is 1.92, indicating a consensus between Strong Buy and Buy based on 40 brokerage firms' recommendations [2] - Of the 40 recommendations, 21 are Strong Buy (52.5%) and 2 are Buy (5%) [2] - Analysts' optimism regarding Okta's earnings prospects is reflected in a recent 11.5% increase in the Zacks Consensus Estimate for the current year, now at $3.28 [13] Brokerage Recommendations - Brokerage recommendations are often influenced by the vested interests of the firms, leading to a bias in favor of positive ratings [6][10] - For every "Strong Sell" recommendation, there are five "Strong Buy" recommendations, indicating a potential misalignment with retail investors' interests [6][7] - The ABR is calculated based on brokerage recommendations and may not always be up-to-date, while the Zacks Rank is more timely and driven by earnings estimate revisions [12] Zacks Rank Comparison - The Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, with Okta currently holding a Zacks Rank 2 (Buy) [14] - The Zacks Rank is considered a more effective indicator of stock price performance compared to the ABR, as it reflects timely changes in earnings estimates [11][12] - The ABR for Okta aligns with the Zacks Rank, providing a useful guide for investors [14]

Core Viewpoint - Brokerage recommendations, particularly for Kroger, suggest a favorable outlook, but reliance solely on these recommendations may not be prudent due to potential biases and misalignment with retail investors' interests [5][10]. Group 1: Brokerage Recommendations - Kroger has an average brokerage recommendation (ABR) of 1.90, indicating a range between Strong Buy and Buy, based on 20 brokerage firms' recommendations [2]. - Out of the 20 recommendations, 11 are classified as Strong Buy, accounting for 55% of the total recommendations [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often fail to effectively guide investors towards stocks with significant price appreciation potential [5][10]. Group 2: Analyst Bias and Zacks Rank - 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]. - 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 correlate strongly 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 always be up-to-date [12]. Group 3: Kroger's Current Position - The Zacks Consensus Estimate for Kroger's earnings for the current year remains unchanged at $4.74, indicating steady analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Kroger holds a Zacks Rank 3 (Hold), suggesting caution despite the favorable ABR [14].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on AutoZone (AZO), and suggests that while the average brokerage recommendation (ABR) indicates a positive outlook, investors should be cautious and validate these recommendations with other tools like Zacks Rank [1][5][10]. Group 1: Brokerage Recommendations - AutoZone has an average brokerage recommendation (ABR) of 1.29, indicating a consensus between Strong Buy and Buy, based on 26 brokerage firms [2]. - Out of the 26 recommendations, 21 are Strong Buy and 2 are Buy, which account for 80.8% and 7.7% of all recommendations respectively [2]. - Despite the positive ABR, studies suggest that brokerage recommendations often do not effectively guide investors towards stocks with the highest potential for price appreciation [5][10]. Group 2: Zacks Rank Comparison - Zacks Rank categorizes stocks into five groups, 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 for AutoZone is currently 2 (Buy), reflecting a 0.1% increase in the consensus earnings estimate to $150.03 over the past month, indicating growing optimism among analysts [13][14]. - The ABR for AutoZone can serve as a useful guide for investors, but it is recommended to use it in conjunction with Zacks Rank for a more informed investment decision [14].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on ConocoPhillips (COP), and highlights the disparity between average brokerage recommendations (ABR) and the Zacks Rank as indicators for investment decisions [1][5][10]. Group 1: Brokerage Recommendations - ConocoPhillips has an average brokerage recommendation (ABR) of 1.35, indicating a consensus between Strong Buy and Buy, with 74.1% of recommendations being Strong Buy and 14.8% being Buy [2][4]. - Despite the favorable ABR, the article cautions against making investment decisions solely based on this metric due to the historical ineffectiveness of brokerage recommendations in predicting stock price increases [5][10]. Group 2: Zacks Rank vs. ABR - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of near-term stock price performance compared to ABR, which is solely based on brokerage recommendations [8][11]. - The Zacks Rank is timely and reflects the latest earnings estimates, while the ABR may not be up-to-date, leading to potential misguidance for investors [12]. Group 3: Current Earnings Outlook for ConocoPhillips - The Zacks Consensus Estimate for ConocoPhillips has declined by 14.2% over the past month to $6.10, indicating growing pessimism among analysts regarding the company's earnings prospects [13]. - This decline in earnings estimates has resulted in a Zacks Rank of 5 (Strong Sell) for ConocoPhillips, suggesting that the positive ABR should be viewed with skepticism [14].

Core Viewpoint - On May 19, 39 target price adjustments were made by brokerages for listed companies, with notable increases in target prices for Kun Pharmaceutical Group, Yongxi Electronics, and Taotao Vehicle, reflecting significant growth potential in the traditional Chinese medicine, semiconductor, and motorcycle industries respectively [1][2]. Group 1: Target Price Increases - Kun Pharmaceutical Group saw a target price increase of 55.14%, with a latest rating of "Buy" from Huatai Financial Holdings (Hong Kong) [2]. - Yongxi Electronics experienced a target price increase of 47.45%, rated "Buy" by CITIC Securities [2]. - Taotao Vehicle's target price rose by 46.25%, also rated "Buy" by Huatai Financial Holdings (Hong Kong) [2]. Group 2: Brokerage Recommendations - A total of 86 listed companies received brokerage recommendations on May 19, with Tongwei Co. receiving recommendations from 4 brokerages, and Huasheng Group and Kunlun Wanwei each receiving 2 recommendations [2]. - The highest number of recommendations indicates strong interest and confidence in these companies within their respective sectors [2]. Group 3: Rating Adjustments - On May 19, there was one upgrade in ratings, with Huachuang Securities raising the rating for Tianwei Food from "Recommended" to "Strongly Recommended" [3]. - There were two downgrades, including Huachuang Securities lowering the rating for BioShares from "Strongly Recommended" to "Recommended," and Huatai Securities downgrading Tongwei Co. from "Buy" to "Increase" [3]. Group 4: First-Time Coverage - On May 19, 12 companies received first-time coverage, including Semir Apparel and Bright Dairy, which were rated "Increase" by Industrial Securities [4]. - Other companies like Wens Foodstuffs received a "Buy" rating, indicating a positive outlook for these newly covered firms [4].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on AudioEye (AEYE), and highlights the importance of using these recommendations in conjunction with other indicators like the Zacks Rank for making informed investment decisions [1][5][10]. Brokerage Recommendations - AudioEye has an average brokerage recommendation (ABR) of 1.20, indicating a consensus between Strong Buy and Buy, with 80% of recommendations being Strong Buy and 20% being Buy [2][14]. - The article emphasizes that while the ABR suggests a buying opportunity, it should not be the sole basis for investment decisions due to the potential bias of brokerage analysts [5][10]. Zacks Rank Comparison - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, with a strong correlation to near-term stock price movements, making it a more reliable indicator than ABR [8][11]. - The Zacks Consensus Estimate for AudioEye has increased by 10.4% over the past month to $0.71, reflecting analysts' optimism about the company's earnings prospects [13]. Investment Implications - The recent increase in the consensus estimate and the Zacks Rank of 2 (Buy) for AudioEye suggests a positive outlook for the stock, indicating it may be worth considering for investment [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?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 TJX (TJX) .TJX currently has an average brokerage recommendation ...

Core Viewpoint - The average brokerage recommendation (ABR) for Petrobras (PBR) is 1.69, indicating a consensus between Strong Buy and Buy, with 62.5% of recommendations being Strong Buy [2][5]. Brokerage Recommendation Trends - The ABR is based on recommendations from eight brokerage firms, with five firms rating it as Strong Buy [2]. - Despite the positive ABR, reliance solely on brokerage recommendations may not be advisable, as studies show they often fail to guide investors effectively [5][10]. Zacks Rank vs. ABR - 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 correlate strongly with stock price movements [8][11]. - The ABR is calculated from brokerage recommendations and may not be timely, while Zacks Rank reflects the latest earnings estimates [9][12]. Earnings Estimate Revisions - The Zacks Consensus Estimate for Petrobras has declined by 6.2% over the past month to $2.94, 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 Petrobras, suggesting caution despite the positive ABR [14].