Recommendations Research Page
Brokerage Research firms spend over a billion dollars a year to fully analyze and recommend stocks to their clients. Most of that expense is paid out as compensation to a group of highly intelligent, and well compensated, equity analysts. It is usually in your best interest to know what these Wall Street heavy weights think about your stocks before you make buy, hold, sell decisions. And there is no better place to gather that information than on the Recommendations research pages on Zacks.com.
Below we review each section of the Recommendations research page so that you understand how best to interpret this information. For display purposes we have spliced in the sections from the Recommendations page for IBM.
Top Section- The Overview
Here you will find a quick snapshot of the basic recommendations picture for any stock you are researching.
Zacks Premium Research
If you are a Zacks Premium subscriber you will be entitled to see the current buy, sell, hold ratings on the company. That includes the Zacks Rank for short term trading and Zacks Recommendations for long term investing. You will also discover the Rank of the Industry and access to the most recent equity research report on the stock. Learn more about Zacks Premium.
|Zacks Premium Research|
|Zacks Target Price||$89.80|
|Zacks Industry Rank||31 out of 217|
|Rank in Industry||2 out of 3|
How many buy, hold and sell ratings are there on the company? You'll find the answers here. More importantly you will see the trend of these ratings from the recent past. Zacks Investment Research has conclusively found a link between the change in recommendations and future performance of stocks. In general, stocks experiencing a recent rise in the ABR (Average Brokerage Recommendation) will outperform the market in the near term. And those stocks seeing a recent decline in their ABR will under perform the market.Learn more about ABR.
|Today||1 Week Ago||1 Month Ago||2 Months Ago||3 Months Ago|
As the old saying goes "The devil is in the details". The same is true for researching the recommendations picture for a stock. All of the information explained above is of value. However, most of these data points are averages that combine the expectations of many analysts. That is why it's so important to look at the individual recommendations for the stock to see whether analyst sentiment is changing for the better or for the worse. There is no better way to see this detail than in the Upgrade/Downgrade table below. Because this information is so valuable, we can only make it available to Zacks Premium customers.
You may wonder why the names of so many of the brokerage firms and analysts are displayed as "Not Identified". That is because many of the brokerage firms believe that the research they produce is their most valuable asset. This makes sense given the billion plus dollars spent to create the research. Thus, some of the firms only allow us to show their recommendations if we remove the name of the firm and analyst. Luckily there is little value in knowing which firm produced which recommendation as it has little affect on the stock price. What is important is being able to see the flow of recommendations which is clearly detailed below.You may wonder why the names of so many of the brokerage firms and analysts are displayed as "Not Identified". That is because many of the brokerage firms believe that the research they produce is their most valuable asset. This makes sense given the billion plus dollars spent to create the research. Thus, some of the firms only allow us to show their recommendations if we remove the name of the firm and analyst. Luckily there is little value in knowing which firm produced which recommendation as it has little affect on the stock price. What is important is being able to see the flow of recommendations which is clearly detailed below.
|08-04-2006||Not Ident.||Not Ident.||N/A||Strong Buy|
|06-01-2006||Canaccord Adams||Not Ident||Strong Buy||Hold|
|04-20-2006||First Global||Not Ident.||Strong Buy||Hold|
|12-21-2005||Moors & Cabot, Inc.||Not Ident.||N/A||Strong Buy|
|12-09-2005||UBS||Not Ident.||Strong Buy||Hold|
Where to View the Recommendations Pages?
The Recommendations page is available on Zacks.com for all stocks covered by brokerage analysts. That is currently about 4400 of the largest stocks on the market.
Here is how to get to the Recommendations pages in the future:
- Go to www.zacks.com
- Enter ticker symbol in upper left hand corner and press "Go". This will take you to the quote page for the stock.
Two ways to access Recommendations from the quote page
- Select "Recommendations" in the drop down box with the research page choices
- Click "Company Reports" in the research navigation area. Then a sub-navigation menu will appear and from there you can select "Recommendations".