A company called SM Energy has been given good recommendations by some people who work for brokerage firms. These people think that the company's stock is a good investment. However, these recommendations might not be very reliable because these people have a reason to be positive about the stock. Instead, we can use a different tool called Zacks Rank, which looks at how much money the company is expected to make in the future. This tool has been successful in the past at predicting how well a stock will do. Based on Zacks Rank, SM Energy's stock might be a good investment. Read from source...

1. AI starts by questioning the validity of Wall Street analysts' opinions and recommendations on SM Energy stock.
2. AI cites a current average brokerage recommendation of 1.85 for SM Energy, which approximates between Strong Buy and Buy, based on 13 brokerage firms' recommendations.
3. AI argues that the vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it, and that their interests aren't always aligned with retail investors.
4. AI suggests that the best use of the ABR is validating one's own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
5. AI introduces the Zacks Rank, a proprietary stock rating tool with an impressive externally audited track record, and explains that it is an effective indicator of a stock's price performance in the near future.
6. AI explains the differences between the ABR and Zacks Rank, and how the latter is timelier and more balanced across stocks.
7. AI discusses the recent change in the consensus estimate for SM Energy, which has resulted in a Zacks Rank #1 (Strong Buy).
8. AI concludes that the Buy-equivalent ABR for SM Energy may serve as a useful guide for investors.

Final thoughts:
AI's article raises

Positive

Is SM Energy a buy as Wall Street analysts look optimistic?

1. Key points:
- The article discusses the reliability of Wall Street analysts' ratings for SM Energy and how they can be used to make investment decisions.
- The article compares the analysts' ratings (ABR) with the Zacks Rank, a proprietary tool that uses earnings estimate revisions to predict stock prices.
- The article concludes that the Zacks Rank is a more reliable indicator of SM Energy's future performance than the analysts' ratings, which are biased by their employers' interests.

2. Summary:
The summary is too long and detailed, losing the main point of the article. A possible summary is:

The article questions the usefulness of Wall Street analysts' ratings for SM Energy, which are often overly positive and influenced by their employers. It suggests using the Zacks Rank, a tool that uses earnings estimate revisions, as a better way to predict stock prices and make investment decisions. The Zacks Rank gives SM Energy a Strong Buy rating based on recent earnings growth.