From Nasdaq: 2024-06-03 09:30:10

Brokerage firm analyst recommendations can influence stock prices, but are they reliable? Alphabet (GOOGL) has an average brokerage recommendation (ABR) of 1.34, indicating a Buy. However, studies show limited success in using such recommendations to predict stock movement due to analysts’ positive bias towards stocks they cover.

Zacks Rank, a tool with a proven track record, categorizes stocks from Strong Buy to Strong Sell based on earnings estimate revisions. While ABR and Zacks Rank may seem similar, they are fundamentally different. Earnings estimate revisions, a core component of Zacks Rank, have a strong correlation with stock price movements.

Analysts’ growing optimism for Alphabet is reflected in a Zacks Rank #1 (Strong Buy) with a consensus estimate increase to $7.60 for the current year. This, coupled with other positive factors, suggests potential for the stock to soar. Investors can use the Buy-equivalent ABR as a guide while making investment decisions.



Read more at Nasdaq: Brokers Suggest Investing in Alphabet (GOOGL): Read This Before Placing a Bet