Imagine you want to know if a toy is good or not. You can ask your friends or family for their opinions. But sometimes, they might not know much about the toy or they might be biased because they work for the toy company. So, their opinions might not be very helpful.
That's why we have something called "brokerage recommendations" for stocks. These are opinions from people who work for companies that buy and sell stocks. But these opinions might not always be right or helpful because the people who work for these companies might be biased too.
There's another way to figure out if a stock is good or not, called the "Zacks Rank". This is based on how much money a company is expected to make in the future. This is more reliable because it's based on numbers and not on opinions.
In this case, the brokerage recommendations for a company called MoneyLion are mostly positive. But that doesn't mean it's always a good idea to buy the stock. You should also look at the Zacks Rank to make a better decision.
Read from source...
- MoneyLion has a 3 out of 5 Zacks Rank, but the article doesn't mention it, only Wall Street analysts' opinions
- The article compares Wall Street analysts' recommendations with Zacks Rank, but they are not directly comparable, as they measure different things
- The article implies that Wall Street analysts' recommendations have more value than Zacks Rank, which has a proven track record of predicting stock price movements
- The article downplays the importance of earnings estimate revisions, which are at the core of Zacks Rank, by calling them "vested interests"
- The article uses outdated information (