so, there are people who work for big companies called "brokers" and they tell other people if they should buy, sell or just hold a certain stock. they give it a number from 1 to 5, like counting - and 1 is like "this stock is really good to buy" and 5 is like "this stock, you should really sell". a lot of times, these brokers, they like the companies they work for and they give them better numbers, like 1 or 2.
but, a man named Jim Cramer, he says that you should not just believe these numbers because sometimes they are not right. there are other ways, like using something called "Zacks Rank", which also gives the stocks numbers, but it's different from what the brokers say. it looks at things like how much money the company is making and if people are expecting that to get better or worse.
so, if you want to know if you should buy a stock, you can look at what these brokers say, but also at the "Zacks Rank". that way, you are using different ways to see if a stock is good or not.
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Article "Energy Transfer LP Is Considered a Good Investment by Brokers: Is That True?". Is the brokerage recommendation or analyst rating valid and reliable? The article discusses the limitations and issues with using brokerage recommendations as a basis for making investment decisions. Brokerage firms have a vested interest in the stocks they cover, and this often results in an overly optimistic bias in their analyst ratings. Although the ABR is calculated based on actual recommendations, it is not a reliable indicator of a stock's future price movement. The article suggests using the ABR to validate your own analysis or a tool that has a proven track record of predicting stock price movements. The Zacks Rank is highlighted as such a tool, with a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Overall, the article emphasizes the importance of critically evaluating sources of information and using a variety of tools and techniques to make informed investment decisions.
Neutral
In the article, the author talks about the Energy Transfer LP stock and its average brokerage recommendation (ABR) of 1.20, which approximates between Strong Buy and Buy. The author also states that investors should not make investment decisions solely based on brokerage recommendations since these recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. The author suggests using the ABR to validate one's own analysis or a tool that has proven to be highly effective at predicting stock price movements. Furthermore, the author highlights the difference between the ABR and Zacks Rank in terms of freshness and notes that the Zacks Rank is timely in predicting future stock prices. In conclusion, the article has a neutral sentiment since it neither promotes buying nor selling the Energy Transfer LP stock.
energy transfer lp (et) is considered a good investment by brokers: is that true? the wall street analysts' recommendation for et is between a strong buy and buy, according to benzinga's average brokerage recommendation (abr) for the stock. However, making an investment decision solely based on this information might not be a good idea. Studies show that brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. This is due to the vested interests of brokerage firms in a stock they cover, which often results in a strong positive bias from their analysts in rating it. Therefore, it would 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.