From Nasdaq
June 16, 2025 09:30:00 AM:

Wall Street analysts’ recommendations can impact stock prices, but are they reliable? MicroStrategy (MSTR) has an average brokerage recommendation of 1.38, indicating a Strong Buy. However, studies show brokerage recommendations may not lead to optimal stock choices due to their positive bias. The Zacks Rank, based on earnings estimates, offers a more accurate indicator.

Brokerage analysts tend to be overly optimistic due to their firms’ vested interests in stocks they cover. In contrast, the Zacks Rank is driven by earnings estimate revisions, showing a stronger correlation with stock price movements. The Zacks Rank is a more balanced and timely tool compared to brokerage recommendations, which may not always be up-to-date.

MicroStrategy’s Zacks Consensus Estimate for the current year stands at -$15.73, resulting in a Zacks Rank #3 (Hold). Analysts’ steady views on the company’s earnings could lead to performance in line with the market. It’s essential to approach the Buy-equivalent ABR for MicroStrategy with caution, considering the potential for future stock price movement.

Zacks Research highlights a little-known satellite-based communications firm as a top pick with the potential to double in value. Analysts project significant revenue growth in 2025, making it a standout among elite picks. While not all picks may succeed, this stock could exceed previous Zacks’ Stocks Set to Double like Hims & Hers Health, which saw a +209% increase.

Read more at Nasdaq: Is MicroStrategy (MSTR) a Buy as Wall Street Analysts Look Optimistic?