From Nasdaq: 2025-04-22 09:30:00

When deciding on stock investments, investors often turn to analyst recommendations. Microsoft (MSFT) currently has an average brokerage recommendation (ABR) of 1.26, indicating a Strong Buy to Buy range. However, studies show brokerage recommendations may not always lead to profitable outcomes due to their positive bias. It’s advised to use this information cautiously.

Zacks Rank, a reliable indicator of stock performance, classifies stocks from Strong Buy to Strong Sell based on earnings estimate revisions. Unlike ABR, Zacks Rank is quantitatively driven and reflects actual trends in stock prices. Analysts’ biases may mislead investors, while Zacks Rank leverages earnings estimates for accurate predictions.

Earnings estimate revisions for Microsoft have led to a Zacks Rank #4 (Sell) due to a decline in consensus estimates. This suggests a bearish outlook on the stock’s performance. Investors should be cautious when considering the Buy-equivalent ABR for Microsoft, as it may not align with the stock’s projected trajectory.



Read more at Nasdaq: Wall Street Analysts See Microsoft (MSFT) as a Buy: Should You Invest?