![]() ![]() ![]() Zacks Rank Should Not Be Confused With ABR Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. ![]() Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.ĭo you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. The ABR suggests buying Paypal, but making an investment decision solely on the basis of this information might not be a good idea. Strong Buy and Buy respectively account for 63.6% and 3% of all recommendations.Ĭheck price target & stock forecast for Paypal here> Of the 33 recommendations that derive the current ABR, 21 are Strong Buy and one is Buy. An ABR of 1.70 approximates between Strong Buy and Buy. Paypal currently has an average brokerage recommendation (ABR) of 1.70, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 33 brokerage firms. ![]()
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