5/30/2023 0 Comments See finance record buyWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Consol Energy. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here > The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Consol Energy. In terms of earnings estimate revisions for Consol Energy, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $21.82.Īnalysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. When you look at the ABR, it may not be up-to-date. ![]() There is also a key difference between the ABR and Zacks Rank when it comes to freshness. In other words, at all times, this tool maintains a balance among the five ranks it assigns. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.įurthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. ![]() With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.Īre you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. While the ABR calls for buying Consol Energy, it may not be wise to make an investment decision solely based on this information. Check price target & stock forecast for Consol Energy here>
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