Amazon has a high average brokerage recommendation, but using the Zacks Rank may offer more reliability.

From Nasdaq: 2024-12-25 09:30:11

Wall Street analysts give Amazon an average brokerage recommendation (ABR) of 1.10, leaning towards a Strong Buy. However, studies show that these recommendations may not always be reliable due to analysts’ bias towards stocks they cover. Zacks Rank, a separate tool, offers a more objective indicator of potential stock performance based on earnings estimate revisions.

Despite a high ABR for Amazon, investors should be cautious in solely relying on this information. Zacks Rank, a quantitative model based on earnings estimate revisions, offers a more reliable indicator of a stock’s potential performance. Analysts’ optimism can lead to biased recommendations, while the Zacks Rank focuses on objective data to predict stock price movements accurately.

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Investors can benefit from using the Zacks Rank alongside the ABR to make informed investment decisions. While the ABR offers brokerage recommendations, the Zacks Rank provides a more objective analysis based on earnings estimate revisions. By combining these tools, investors can gain valuable insights into potential stock performance.



Read more at Nasdaq: Is It Worth Investing in Amazon (AMZN) Based on Wall Street’s Bullish Views?