From Nasdaq:

Wall Street analysts’ ratings have significant impact on stock prices, which is why investors give them weight. Advanced Micro Devices (AMD) has an average brokerage recommendation (ABR) of 1.36 (between Strong Buy and Buy). However, following ABR suggestions may not be in your best interest according to multiple studies.

While ABR suggests buying AMD, giving these ratings too much weight can lead to less profitable investment decisions. It is for these reasons that a different approach could be more beneficial. Validate ABR in combination with Zacks Rank, an in-house stock rating tool. Unlike ABR, Zacks Rank is backed by an audited stock rating model.

ABR is biased as brokerage firms seem to issue more favorable ratings on stocks due to their vested interest, leading to misleading information. On the contrary, Zacks Rank is driven by actual stock performance indicators, making it a more reliable indicator of future stock price movement.

Zacks Rank displays a balance among its five ranks, ensuring timely indication of future price movements influenced by earnings estimate trends. For now, AMD’s recent blend of earnings estimates earned it a Zacks Rank #3 (Hold), suggesting a cautionary stance on a highly optimistic ABR.

Zacks investment experts recommend a little-known chemical company that still holds great potential to skyrocket by up to 100% or more in months to come. With notable earnings projections and share repurchasing markets, this stock could outperform other recent Zacks’ recommendations that have doubled.

To investors keen on riding the wave of AMD’s future prospects, a report by Zacks Investment Research has fresh details on the stock’s earnings estimates and overall growth trajectory. Their data provides clear insights into the stock’s present and future relationships with Wall Street.



Read more: Is Advanced Micro (AMD) a Buy as Wall Street Analysts Look Optimistic?