Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable due to potential biases from brokerage firms [1][6]. Group 1: Analyst Recommendations - Unity Software Inc. (U) has an average brokerage recommendation (ABR) of 2.00, indicating a "Buy" based on recommendations from 22 brokerage firms [2]. - Among the 22 recommendations, 11 are classified as "Strong Buy" and one as "Buy," accounting for 50% and 4.6% 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 highest 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][11]. - 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]. Group 3: Zacks Rank vs. ABR - Zacks Rank is a proprietary stock rating tool that 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 performance [8][12]. - The ABR is calculated solely from brokerage recommendations and may not be up-to-date, while the Zacks Rank reflects timely earnings estimate revisions [13][10]. - The Zacks Consensus Estimate for Unity Software has remained unchanged at $0.82, indicating steady analyst views on the company's earnings prospects [14]. Group 4: Current Investment Outlook - The Zacks Rank for Unity Software is 3 (Hold), suggesting caution despite the Buy-equivalent ABR [15].

Core Insights - The average brokerage recommendation (ABR) for ATI is 1.40, indicating a consensus between Strong Buy and Buy based on recommendations from 10 brokerage firms [2] - Eight out of ten recommendations for ATI are Strong Buy, representing 80% of the total recommendations [2] - Despite the positive ABR, relying solely on brokerage recommendations may not be advisable as they often lack success in guiding investors towards stocks with high price appreciation potential [5][11] Brokerage Recommendation Trends - 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] - This bias suggests that the interests of brokerage firms may not align with those of retail investors, limiting the insight into future stock price movements [7] - The Zacks Rank, a proprietary stock rating tool, is recommended as a more reliable indicator of near-term price performance compared to ABR [8] Zacks Rank vs. ABR - Zacks Rank and ABR are different measures; ABR is based solely on brokerage recommendations, while Zacks Rank utilizes earnings estimate revisions [9][10] - The Zacks Rank is timely and reflects changes in earnings estimates quickly, providing a more current indication of future price movements [13] - The Zacks Consensus Estimate for ATI has increased by 1.9% over the past month to $3.2, indicating growing optimism among analysts regarding the company's earnings prospects [14] Investment Outlook for ATI - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 2 (Buy) for ATI, suggesting a positive investment outlook [15] - The Buy-equivalent ABR for ATI may serve as a useful guide for investors, complementing the insights provided by the Zacks Rank [15]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Ulta Beauty (ULTA), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank to make informed investment decisions [1][5][11]. Group 1: Brokerage Recommendations - Ulta currently has an average brokerage recommendation (ABR) of 1.94, indicating a position between Strong Buy and Buy, based on recommendations from 25 brokerage firms [2]. - Of the 25 recommendations, 13 are Strong Buy and 2 are Buy, which account for 52% and 8% of all recommendations, respectively [2]. - Despite the positive ABR, the article cautions against making investment decisions solely based on this metric due to the tendency of brokerage analysts to exhibit a strong positive bias in their ratings [5][6]. Group 2: Zacks Rank - The Zacks Rank categorizes stocks into five groups, from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [8][12]. - The Zacks Consensus Estimate for Ulta has increased by 4.8% over the past month to $25.31, reflecting analysts' growing optimism about the company's earnings prospects [14]. - Ulta has received a Zacks Rank 2 (Buy), indicating a favorable outlook based on the recent changes in earnings estimates and other related factors [15].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Eli Lilly (LLY), and highlights the potential misalignment of interests between brokerage firms and retail investors [1][10]. Brokerage Recommendations - Eli Lilly currently has an average brokerage recommendation (ABR) of 1.55, indicating a consensus between Strong Buy and Buy, based on recommendations from 28 brokerage firms [2]. - Out of the 28 recommendations, 19 are classified as Strong Buy, accounting for 67.9%, while 2 are classified as Buy, making up 7.1% of the total [2]. Limitations of Brokerage Recommendations - The article suggests that relying solely on brokerage recommendations may not be wise, as studies indicate limited success in guiding investors towards stocks with the best price increase potential [5]. - 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]. 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 [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]. Current Earnings Estimates for Eli Lilly - The Zacks Consensus Estimate for Eli Lilly's current year earnings has declined by 1.8% over the past month to $22.73, 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 Eli Lilly, suggesting caution despite the positive ABR [14].

Core Insights - Wall Street analysts' recommendations significantly influence investors' decisions regarding Norwegian Cruise Line (NCLH) stock, with an average brokerage recommendation (ABR) of 1.64 indicating a preference for buying the stock [2][5]. Brokerage Recommendations - The current ABR of 1.64 is based on 22 brokerage firms, with 15 firms (68.2%) issuing a "Strong Buy" recommendation [2]. - Despite the positive ABR, reliance solely on brokerage recommendations may not be advisable, as studies indicate they often fail to guide investors effectively towards stocks with high price appreciation potential [5][10]. Analyst Bias - Brokerage analysts tend to exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. - For every "Strong Sell" recommendation, there are five "Strong Buy" recommendations, suggesting a misalignment of interests between brokerage firms and retail investors [6][7]. Zacks Rank vs. ABR - The Zacks Rank, a proprietary stock rating tool, is based on earnings estimate revisions and is considered a more reliable indicator of near-term price performance compared to ABR [8][11]. - The Zacks Rank is updated more frequently and reflects the latest earnings estimates, while ABR may not always be current [12]. Earnings Estimates for NCLH - The Zacks Consensus Estimate for NCLH has increased by 3.1% over the past month to $2.1, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - This increase in consensus estimates, along with other factors, has resulted in a Zacks Rank of 1 (Strong Buy) for Norwegian Cruise Line, suggesting a potential for stock price appreciation [14].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Roku (ROKU), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for making investment decisions [1][5]. Brokerage Recommendations for Roku - Roku has an average brokerage recommendation (ABR) of 1.84, indicating a consensus between Strong Buy and Buy, based on recommendations from 30 brokerage firms [2]. - Out of the 30 recommendations, 17 are classified as Strong Buy and 2 as Buy, representing 56.7% and 6.7% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - The article highlights that relying solely on brokerage recommendations may not be wise, as studies show limited success in guiding investors towards stocks with the best price increase potential [5]. - Analysts from brokerage firms often exhibit a strong positive bias due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell recommendations [6][10]. Comparison with Zacks Rank - The Zacks Rank is presented as a more reliable indicator of a stock's near-term price performance, based on earnings estimate revisions rather than brokerage recommendations [8][11]. - Unlike the ABR, which is based solely on brokerage recommendations, the Zacks Rank utilizes a quantitative model that reflects earnings estimate revisions, providing a more timely and balanced assessment of stock performance [9][12]. Current Earnings Estimates for Roku - The Zacks Consensus Estimate for Roku's current year earnings remains unchanged at $0.12, indicating steady analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Roku holds a Zacks Rank of 3 (Hold), suggesting caution despite the Buy-equivalent ABR [14].

Core Viewpoint - Wall Street analysts' recommendations, while influential on stock prices, may not reliably guide investors in selecting stocks with the highest potential for price appreciation [3][4][8]. Summary by Sections Brokerage Recommendations - Archrock Inc. (AROC) has an average brokerage recommendation (ABR) of 1.60, indicating a position between Strong Buy and Buy, based on recommendations from 10 brokerage firms [2]. - The breakdown of recommendations shows six as Strong Buy (60%) and two as Buy (20%) [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations often lack success in guiding investors towards stocks with significant price appreciation potential [3]. - Analysts from brokerage firms tend to exhibit a positive bias due to vested interests, resulting in a disproportionate number of favorable ratings compared to negative ones [4][8]. Zacks Rank as an Alternative - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which correlate strongly with near-term stock price movements [6][9]. - The Zacks Rank is distinct from ABR, as it is a quantitative model rather than solely based on brokerage recommendations [7]. Current Earnings Estimates for Archrock Inc. - The Zacks Consensus Estimate for Archrock Inc. remains unchanged at $1.57 for the current year, suggesting stable analyst views on the company's earnings prospects [11]. - The Zacks Rank for Archrock Inc. is currently 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [12].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Workday (WDAY), and emphasizes the importance of validating these recommendations with other indicators like the Zacks Rank [1][5]. Brokerage Recommendations - Workday has an average brokerage recommendation (ABR) of 1.59, indicating a consensus between Strong Buy and Buy, based on 39 brokerage firms [2]. - Out of the 39 recommendations, 26 are Strong Buy (66.7%) and 3 are Buy (7.7%) [2]. Limitations of Brokerage Recommendations - Solely relying on ABR for investment decisions may not be wise, as studies show limited success in guiding investors towards stocks with the best price increase potential [5]. - Analysts from brokerage firms often exhibit a strong positive bias due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][10]. Zacks Rank as an Alternative - The Zacks Rank, which classifies stocks from 1 (Strong Buy) to 5 (Strong Sell), is presented as a more reliable indicator of near-term price performance, driven by earnings estimate revisions [8][11]. - The Zacks Rank is timely and reflects the latest earnings estimates, unlike the ABR, which may not be up-to-date [13]. Workday's Earnings Estimates - The Zacks Consensus Estimate for Workday's current year earnings has increased by 7.5% over the past month to $8.84, indicating growing optimism among analysts [14]. - The recent change in consensus estimates, along with other factors, has resulted in a Zacks Rank 1 (Strong Buy) for Workday, suggesting a potential for stock price appreciation [15].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Chipotle Mexican Grill (CMG), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][5][10]. Brokerage Recommendations - Chipotle has an average brokerage recommendation (ABR) of 1.56, indicating a position between Strong Buy and Buy, based on recommendations from 33 brokerage firms [2]. - Out of the 33 recommendations, 22 are classified as Strong Buy (66.7%) and 3 as Buy (9.1%) [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][10]. - Brokerage analysts tend to 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 - Zacks Rank, a proprietary stock rating tool, categorizes stocks 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 is distinct from ABR, as it is a quantitative model that reflects timely earnings estimates, while ABR may not always be up-to-date [9][12]. Current Earnings Estimates for Chipotle - The Zacks Consensus Estimate for Chipotle's current year earnings remains unchanged at $1.21, suggesting analysts have steady views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Chipotle holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [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 Cardinal Health (CAH) . Cardinal currently has an average broker ...