Financial Analysts (usually employed by investment banks) analyze industries and company fundamentals and release investment recommendations based on their findings. The Analyst Consensus for a stock is either a Strong Buy, Moderate Buy, Hold, Moderate Sell, or Strong Sell.
Analysts’ Consensus Ratings
Strong Buy is related to analysts expect and consensus on a specific stock. A strong buy means analysts’ expectation that the stock will far exceed the average return on the stock market.
Moderate Buy means analysts expect that the stock will outperform the overall stock market.
Hold means analysts recommend to neither buy nor sell the stock. . A Hold rating is usually given due to strong volatility in the stock market, the performance of other stocks in the same sector, or uncertainty about the stock
Moderate Sell means analysts expect the stock to perform slightly lower than the overall stock market.
StrongSell means analysts expect the stock to perform lower than the overall stock market.
Top Analysts’ Rating Consensus
The consensus rating of the Top Analysts on a stock is based only on those Wall Street analysts whose recommendations were most accurate.
The performance measurement incorporates the analysts’ success rates and average returns and is based on the TipRanks Star Ranking™ system.
The TipRanks Star Ranking system incorporates all analyst recommendations since January 2009. Through various calculations and statistical analyses, TipRanks can rank analysts according to their performance, which is a combination of recommendations’ Success Rate and Profitability. Therefore, investors can either choose which analysts to listen to according to their ranking or simply view the overall Analyst Rating Consensus for a stock.