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Brokers Suggest Investing in Robinhood Markets (HOOD): Read This Before Placing a Bet
ZACKS· 2025-07-15 14:31
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Robinhood Markets, Inc. (HOOD), 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 the Zacks Rank [1][5][10]. Group 1: Brokerage Recommendations - Robinhood Markets has an average brokerage recommendation (ABR) of 1.86, which is between Strong Buy and Buy, based on recommendations from 21 brokerage firms [2]. - Out of the 21 recommendations, 12 are Strong Buy and 2 are Buy, accounting for 57.1% and 9.5% of all recommendations respectively [2]. Group 2: Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have 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]. Group 3: Zacks Rank as an Alternative - The Zacks Rank is a proprietary stock rating tool that categorizes stocks from Strong Buy to 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 timely indicator of future price movements [12]. Group 4: Current Outlook for Robinhood Markets - The Zacks Consensus Estimate for Robinhood Markets has increased by 2.3% over the past month to $1.26, 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 1 (Strong Buy) for Robinhood Markets, suggesting a positive outlook for the stock [14].
Brokers Suggest Investing in Okta (OKTA): Read This Before Placing a Bet
ZACKS· 2025-07-10 14:30
Core Viewpoint - The average brokerage recommendation (ABR) for Okta (OKTA) is 2.00, indicating a Buy, based on recommendations from 41 brokerage firms [2]. Brokerage Recommendations - The ABR of 2.00 is derived from 21 Strong Buy and 2 Buy recommendations, which account for 51.2% and 4.9% of all recommendations respectively [2]. - Despite the positive ABR, relying solely on brokerage recommendations may not be advisable, as studies show they often fail to guide investors effectively [5][10]. Analyst Bias - 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]. - This misalignment of interests can lead to misleading guidance for retail investors [7][10]. 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, showing a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is distinct from ABR, as it is a quantitative model reflecting timely earnings estimates, while ABR may not be up-to-date [9][12]. Current Earnings Estimates - The Zacks Consensus Estimate for Okta's current year earnings remains unchanged at $3.28, indicating steady analyst views on the company's earnings prospects [13]. - This stability has resulted in a Zacks Rank 3 (Hold) for Okta, suggesting caution despite the Buy-equivalent ABR [14].
Wall Street Bulls Look Optimistic About Sterling Infrastructure (STRL): Should You Buy?
ZACKS· 2025-07-08 14:31
Core Viewpoint - Wall Street analysts' recommendations significantly influence investor decisions, but their reliability is questionable, particularly for Sterling Infrastructure (STRL) [1][5]. Group 1: Brokerage Recommendations - Sterling Infrastructure has an average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy based on three brokerage firms' recommendations, all of which are Strong Buy [2]. - The ABR suggests a favorable outlook for Sterling Infrastructure, but relying solely on this metric may not be advisable due to the historical ineffectiveness of brokerage recommendations in predicting stock price appreciation [5][10]. Group 2: Analyst Bias and Zacks Rank - Brokerage analysts often exhibit a strong positive bias in their ratings, with a tendency to issue five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of near-term stock performance compared to the ABR [8][11]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, unlike the ABR, which may not always be current [13]. Group 3: Current Earnings Estimates and Recommendations - The Zacks Consensus Estimate for Sterling Infrastructure remains unchanged at $8.61, suggesting stable analyst views on the company's earnings prospects [14]. - Due to the unchanged consensus estimate and other factors, Sterling Infrastructure currently holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [15].
Wall Street Analysts Think Kinder Morgan (KMI) Is a Good Investment: Is It?
ZACKS· 2025-07-08 14:31
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Kinder Morgan (KMI), and highlights the potential misalignment of interests between brokerage firms and retail investors [1][10]. Brokerage Recommendation Summary - Kinder Morgan has an average brokerage recommendation (ABR) of 2.00, indicating a "Buy" based on recommendations from 19 brokerage firms, with 9 "Strong Buy" and 1 "Buy" [2][5]. - Strong Buy and Buy recommendations account for 47.4% and 5.3% of all recommendations, respectively [2]. Analysis of Brokerage Recommendations - Studies indicate that brokerage recommendations may not effectively guide investors in selecting stocks with the best price increase potential [5]. - 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 interests of brokerage firms may not align with those of retail investors, leading to a lack of insight into future stock price movements [7]. Zacks Rank Comparison - Zacks Rank is a proprietary stock rating tool that categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, showing a strong correlation with near-term stock price movements [8][11]. - Unlike ABR, Zacks Rank is a quantitative model and is updated more frequently, reflecting timely changes in earnings estimates [9][12]. Current Earnings Estimates for Kinder Morgan - The Zacks Consensus Estimate for Kinder Morgan's current year earnings remains unchanged at $1.26, suggesting steady analyst views on the company's earnings prospects [13]. - The Zacks Rank for Kinder Morgan is 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].
Synopsys (SNPS) Is Considered a Good Investment by Brokers: Is That True?
ZACKS· 2025-07-04 14:31
Core Viewpoint - The average brokerage recommendation (ABR) for Synopsys (SNPS) is 1.26, indicating a strong buy sentiment from analysts, but reliance solely on this metric may not be advisable due to potential biases in brokerage recommendations [2][5][10]. Brokerage Recommendations - Synopsys has an ABR of 1.26, with 16 out of 19 recommendations classified as Strong Buy, accounting for 84.2% of total recommendations [2]. - The remaining recommendations include one classified as Buy, which accounts for 5.3% [2]. Limitations of Brokerage Recommendations - Brokerage analysts tend to exhibit a strong positive bias in their ratings, often issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - This bias may mislead investors, as the interests of brokerage firms do not always align with those of retail investors [7][10]. Comparison with Zacks Rank - The Zacks Rank, which is based on earnings estimate revisions, is a more reliable indicator of a stock's near-term price performance compared to ABR [8][11]. - Zacks Rank is displayed in whole numbers and is updated more frequently, reflecting timely changes in earnings estimates [9][12]. Current Earnings Estimates for Synopsys - The Zacks Consensus Estimate for Synopsys remains unchanged at $15.09 for the current year, suggesting stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Synopsys holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the positive ABR [14].
Should You Invest in Gray Media (GTN) Based on Bullish Wall Street Views?
ZACKS· 2025-07-03 14:30
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Gray Media (GTN), 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 - Gray Media has an average brokerage recommendation (ABR) of 1.80, indicating a rating between Strong Buy and Buy, based on recommendations from five brokerage firms [2]. - Out of the five recommendations, three are Strong Buy, accounting for 60% of the total recommendations [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, 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 potential misguidance regarding stock price movements [7][10]. Zacks Rank as an Alternative - The Zacks Rank is presented as a more reliable indicator of a stock's near-term price performance, utilizing earnings estimate revisions as its core metric [8][11]. - Unlike the ABR, which is based solely on brokerage recommendations, the Zacks Rank is a quantitative model that reflects timely changes in earnings estimates [9][12]. Current Earnings Estimates for Gray Media - The Zacks Consensus Estimate for Gray Media's current year earnings remains unchanged at -$0.72, suggesting stable analyst views on the company's earnings prospects [13]. - The Zacks Rank for Gray Media is currently 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].
Should You Invest in ARKO (ARKO) Based on Bullish Wall Street Views?
ZACKS· 2025-07-02 14:30
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on ARKO Corp. (ARKO), and emphasizes the importance of using these recommendations in conjunction with other research tools like the Zacks Rank to make informed investment decisions [1][5][10]. Group 1: Brokerage Recommendations - ARKO has an average brokerage recommendation (ABR) of 2.00, indicating a Buy, based on recommendations from four brokerage firms, with two of them being Strong Buy, representing 50% of the total recommendations [2]. - Despite the positive ABR, the article cautions against making investment decisions solely based on this metric, as studies show limited success of brokerage recommendations in predicting stock price increases [5][10]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, often issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Group 2: Zacks Rank vs. ABR - The Zacks Rank is presented as a more reliable indicator of a stock's near-term price performance, classifying stocks into five groups from Strong Buy to Strong Sell, based on earnings estimate revisions [8][11]. - Unlike the ABR, which is based solely on brokerage recommendations, the Zacks Rank is a quantitative model that reflects timely changes in earnings estimates, making it a more current indicator of future price movements [9][12]. - The Zacks Consensus Estimate for ARKO has remained unchanged at $0.08 over the past month, suggesting that analysts have steady views on the company's earnings prospects [13]. Group 3: Investment Outlook for ARKO - The recent consensus estimate changes and other related factors have resulted in a Zacks Rank 3 (Hold) for ARKO, indicating a cautious approach despite the Buy-equivalent ABR [14].
Wall Street Analysts See OneSpan (OSPN) as a Buy: Should You Invest?
ZACKS· 2025-07-02 14:30
Core Viewpoint - The average brokerage recommendation (ABR) for OneSpan (OSPN) is 2.00, indicating a Buy, based on recommendations from four brokerage firms, with 50% of these being Strong Buy [2][5]. Brokerage Recommendation Trends - The ABR of 2.00 suggests a positive outlook for OneSpan, but reliance solely on this metric may not be advisable due to studies showing limited success of brokerage recommendations in predicting stock price increases [5][10]. - Brokerage firms often exhibit a bias in their recommendations, with a tendency to issue five "Strong Buy" ratings for every "Strong Sell" [6][10]. 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 OneSpan is currently 3 (Hold), indicating a cautious stance despite the Buy-equivalent ABR [15]. Earnings Estimates - The Zacks Consensus Estimate for OneSpan's earnings for the current year remains unchanged at $1.45, suggesting stability in analysts' views regarding the company's earnings prospects [14]. - The unchanged consensus estimate, along with other factors, has contributed to the Zacks Rank 3 for OneSpan, indicating potential performance in line with the broader market [15].
Wall Street Analysts See Abercrombie (ANF) as a Buy: Should You Invest?
ZACKS· 2025-07-02 14:30
Group 1 - Abercrombie & Fitch (ANF) has an average brokerage recommendation (ABR) of 1.90, indicating a consensus between Strong Buy and Buy, with 50% of recommendations being Strong Buy and 10% being Buy [2][5] - The Zacks Consensus Estimate for Abercrombie's current year earnings has declined by 0.1% to $10.17, reflecting analysts' growing pessimism about the company's earnings prospects [14] - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 4 (Sell) for Abercrombie, suggesting caution despite the positive ABR [15] Group 2 - Brokerage analysts tend to exhibit a strong positive bias in their recommendations, often issuing five Strong Buy ratings for every Strong Sell, which may mislead investors [6][10] - The Zacks Rank is a more reliable indicator of a stock's near-term price performance, driven by earnings estimate revisions, and is updated more frequently than the ABR [8][13] - The ABR may not be up-to-date, while the Zacks Rank reflects timely changes in earnings estimates, making it a better tool for predicting future stock prices [13]
Emcor Group (EME) Is Considered a Good Investment by Brokers: Is That True?
ZACKS· 2025-07-01 14:31
Core Viewpoint - Emcor Group (EME) has an average brokerage recommendation (ABR) of 1.89, indicating a consensus between Strong Buy and Buy, with 66.7% of recommendations being Strong Buy [2][5]. Brokerage Recommendation Trends - The ABR is based on recommendations from nine brokerage firms, with six firms rating it as Strong Buy [2]. - Despite the positive ABR, reliance solely on brokerage recommendations may not be wise, as studies show limited success in guiding investors to stocks with the best price increase potential [5][10]. 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, showing a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank for Emcor Group is 3 (Hold), indicating a cautious stance despite the positive ABR [14]. Earnings Estimates - The Zacks Consensus Estimate for Emcor Group's current year earnings remains unchanged at $23.59, suggesting steady analyst views on the company's earnings prospects [13]. - The recent change in consensus estimates, along with other factors, has led to the Zacks Rank of 3 for Emcor Group, advising caution with the Buy-equivalent ABR [14].