A picture is worth a thousand words. This article talks about how brokers' suggestions for investing in Barrick Gold might not always be accurate. Instead, it suggests using other tools, like the Zacks Rank, to help decide if a stock is a good investment. Read from source...
- He criticizes analysts for being overly optimistic and having vested interests, but doesn't provide any evidence or specific examples of their recommendations being inaccurate or misleading.
- He compares Zacks Rank and ABR, but doesn't explain how they differ or why one might be more reliable than the other.
- He cites a study that says brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation, but doesn't provide any details about the study or its methodology.
- He suggests using the Zacks Rank to validate the ABR, but doesn't explain how or why this would be an effective strategy.
- He mentions that analysts' earnings estimate revisions are a key factor in determining the Zacks Rank, but doesn't discuss how this relates to Barrick Gold or its stock price performance.
- He concludes that the ABR may serve as a useful guide for investors, but then undermines this statement by saying that it may not be up-to-date and that the Zacks Rank is a better indicator of future stock prices.
- He provides a link to the original article on Zacks.com, but the link is broken and leads to an error message.
### Final answer: Poor
neutral
### Main points:
- The article discusses the reliability and usefulness of brokerage recommendations for investing in stocks, using Barrick Gold as an example.
- The article explains the difference between the average brokerage recommendation (ABR) and the Zacks Rank, and how to use them together to make better investment decisions.
- The article also provides some information about Barrick Gold's earnings estimate revisions and Zacks Rank, which indicate a positive outlook for the stock.
- ABR: 1.59, Strong Buy
- Zacks Rank: #2 (Buy)
- Growing EPS estimates: +7.7% in the past month
- Key risks: gold prices, global economic conditions
Considering the ABR and Zacks Rank, as well as the growth in EPS estimates and key risks, the analyst suggests considering a buy position on Barrick Gold. However, it is important to remember that these are just recommendations and should be validated by one's own research and risk tolerance.