Wall Street views on Alphabet positive bias may not be reliable, Zacks Rank a better indicator.

From Nasdaq: 2024-12-20 09:30:12

Wall Street analysts’ recommendations are important for investors, but are they reliable? Alphabet’s average brokerage recommendation is 1.34, with 80% Strong Buy and 6% Buy ratings. However, studies show these recommendations often have a positive bias and may not guide investors effectively.

The Zacks Rank tool, which predicts stock performance based on earnings estimate revisions, is more reliable than brokerage recommendations. Analysts’ strong positive bias often misguides investors, while the Zacks Rank focuses on earnings trends. It is a more balanced and timely indicator of a stock’s future price movement.

Alphabet’s Zacks Consensus Estimate remains steady at $8.02, leading to a Zacks Rank #3 (Hold). With stable earnings prospects, the stock may perform in line with the market. Investors should be cautious with the Buy-equivalent ABR for Alphabet, relying more on tools like the Zacks Rank for investment decisions.



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