From Nasdaq: 2024-04-12 09:30:09

Investors often rely on Wall Street analysts’ recommendations when making stock decisions. Currently, 16 out of 28 recommend Apple as a Strong Buy. However, research shows these recommendations may not always lead to profitable choices due to analysts’ positive bias. Validating with Zacks Rank, which focuses on earnings estimate revisions, could be more effective.

Apple currently holds an Average Brokerage Recommendation of 1.80, indicating a Buy sentiment. However, relying solely on this may not be wise, as brokerage analysts tend to have a positive bias. Zacks Rank, on the other hand, focuses on earnings estimate revisions and has shown a strong correlation with stock price movements.

Zacks Rank categorizes stocks from Strong Buy to Strong Sell based on earnings estimate revisions, providing a balanced and timely indicator of future price movements. It differs from the ABR, displayed as a decimal, which is more influenced by analysts’ recommendations. Zacks Rank relies on quantifiable data like earnings estimates.

Apple’s Zacks Consensus Estimate remains at $6.55, leading to a Hold ranking by Zacks Rank. Analysts’ steady views on earnings could indicate market performance alignment. As earnings trends are key to predicting stock movements, caution is advised with Apple’s Buy-equivalent ABR.

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Read more at Nasdaq: Should You Invest in Apple (AAPL) Based on Bullish Wall Street Views?