Wall Street analysts optimistic about Apple stock, but caution urged due to steady earnings estimate

From Nasdaq: 2024-12-26 09:30:09

Wall Street analysts offer recommendations on Apple stock. The average brokerage recommendation for AAPL is 1.96, leaning towards Buy. However, studies show brokerage recommendations may not always predict stock price movements accurately due to a positive bias. Using Zacks Rank alongside ABR could lead to more profitable investment decisions.

Zacks Rank, a tool based on earnings estimate revisions, categorizes stocks from Strong Buy to Strong Sell. Unlike ABR, Zacks Rank is more reliable in predicting future stock price movements. Analysts’ bias towards positive recommendations may mislead investors, while Zacks Rank focuses on earnings estimate revisions, which align with stock price movements.

Earnings estimate revisions for Apple have remained steady, resulting in a Zacks Rank #3 (Hold). This suggests caution despite the Buy-equivalent ABR. Trillions in infrastructure spending present investment opportunities in AI, renewable energy, and more. Discover 5 stocks poised to benefit from this spending spree for potential profits.



Read more at Nasdaq: Wall Street Bulls Look Optimistic About Apple (AAPL): Should You Buy?