From Nasdaq, Inc.:



Investors often rely on recommendations made by Wall Street analysts when making investment decisions. Amazon currently has an average brokerage recommendation (ABR) of 1.12, with 39 Strong Buy and three Buy recommendations. However, studies show that brokerage recommendations may not be reliable for guiding investment decisions. Analysts tend to provide overly optimistic ratings due to the vested interests of their employers, which may not align with the interests of retail investors. The Zacks Rank, on the other hand, is based on earnings estimate revisions and is considered a more reliable indicator of a stock’s price performance. For Amazon, the Zacks Rank is #1 (Strong Buy), indicating growing optimism among analysts about the company’s earnings prospects. This suggests that the ABR for Amazon may serve as a useful guide for investors. This aligns with the fact that recent changes in the consensus estimate resulted in a Zacks Rank #1 for Amazon, indicating potential for the stock to soar in the near term. Therefore, the Buy-equivalent ABR for Amazon may serve as a useful guide for investors. For those interested in investment opportunities with potential for high returns, Zacks recommends a little-known chemical company that is predicted to have explosive upside potential. Ultimately, the article suggests that investors should consider Zacks Rank alongside ABR to make informed investment decisions, rather than relying solely on brokerage recommendations.



Original: Is Amazon (AMZN) a Buy as Wall Street Analysts Look Optimistic?