S&P 500   4,288.67 (+0.01%)
DOW   33,447.31 (-0.18%)
QQQ   359.25 (+0.27%)
AAPL   172.94 (+1.01%)
MSFT   316.89 (+0.36%)
META   303.42 (+1.07%)
GOOGL   132.13 (+0.97%)
AMZN   127.01 (-0.09%)
TSLA   243.20 (-2.81%)
NVDA   442.91 (+1.82%)
NIO   8.93 (-1.22%)
BABA   87.09 (+0.40%)
AMD   103.20 (+0.37%)
T   15.02 (+0.00%)
F   12.41 (-0.08%)
MU   68.03 (+0.00%)
CGC   0.78 (-0.97%)
GE   110.36 (-0.17%)
DIS   81.02 (-0.04%)
AMC   8.13 (+1.75%)
PFE   32.99 (-0.54%)
PYPL   58.65 (+0.33%)
NFLX   378.80 (+0.32%)
S&P 500   4,288.67 (+0.01%)
DOW   33,447.31 (-0.18%)
QQQ   359.25 (+0.27%)
AAPL   172.94 (+1.01%)
MSFT   316.89 (+0.36%)
META   303.42 (+1.07%)
GOOGL   132.13 (+0.97%)
AMZN   127.01 (-0.09%)
TSLA   243.20 (-2.81%)
NVDA   442.91 (+1.82%)
NIO   8.93 (-1.22%)
BABA   87.09 (+0.40%)
AMD   103.20 (+0.37%)
T   15.02 (+0.00%)
F   12.41 (-0.08%)
MU   68.03 (+0.00%)
CGC   0.78 (-0.97%)
GE   110.36 (-0.17%)
DIS   81.02 (-0.04%)
AMC   8.13 (+1.75%)
PFE   32.99 (-0.54%)
PYPL   58.65 (+0.33%)
NFLX   378.80 (+0.32%)
S&P 500   4,288.67 (+0.01%)
DOW   33,447.31 (-0.18%)
QQQ   359.25 (+0.27%)
AAPL   172.94 (+1.01%)
MSFT   316.89 (+0.36%)
META   303.42 (+1.07%)
GOOGL   132.13 (+0.97%)
AMZN   127.01 (-0.09%)
TSLA   243.20 (-2.81%)
NVDA   442.91 (+1.82%)
NIO   8.93 (-1.22%)
BABA   87.09 (+0.40%)
AMD   103.20 (+0.37%)
T   15.02 (+0.00%)
F   12.41 (-0.08%)
MU   68.03 (+0.00%)
CGC   0.78 (-0.97%)
GE   110.36 (-0.17%)
DIS   81.02 (-0.04%)
AMC   8.13 (+1.75%)
PFE   32.99 (-0.54%)
PYPL   58.65 (+0.33%)
NFLX   378.80 (+0.32%)
S&P 500   4,288.67 (+0.01%)
DOW   33,447.31 (-0.18%)
QQQ   359.25 (+0.27%)
AAPL   172.94 (+1.01%)
MSFT   316.89 (+0.36%)
META   303.42 (+1.07%)
GOOGL   132.13 (+0.97%)
AMZN   127.01 (-0.09%)
TSLA   243.20 (-2.81%)
NVDA   442.91 (+1.82%)
NIO   8.93 (-1.22%)
BABA   87.09 (+0.40%)
AMD   103.20 (+0.37%)
T   15.02 (+0.00%)
F   12.41 (-0.08%)
MU   68.03 (+0.00%)
CGC   0.78 (-0.97%)
GE   110.36 (-0.17%)
DIS   81.02 (-0.04%)
AMC   8.13 (+1.75%)
PFE   32.99 (-0.54%)
PYPL   58.65 (+0.33%)
NFLX   378.80 (+0.32%)

Stock Price Targets and Analyst Ratings

CompanyActionBrokerageAnalystCurrent PricePrice TargetRatingDetails
Accolade, Inc. stock logo
ACCD
Accolade
Reiterated byNeedham & Company LLC
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$10.63
+0.5%
$17.00Buy ➝ Buy
AcelRx Pharmaceuticals, Inc. stock logo
ACRX
AcelRx Pharmaceuticals
Initiated byAlliance Global Partners
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$0.62
+6.7%
$4.25Buy
Adecoagro S.A. stock logo
AGRO
Adecoagro
Downgraded byItau BBA Securities
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$11.16
-4.5%
$12.00Outperform ➝ Market Perform
BigBear.ai Holdings, Inc. stock logo
BBAI
BigBear.ai
Initiated byTD Cowen
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$1.58
+4.6%
$2.00Market Perform
Bread Financial Holdings, Inc. stock logo
BFH
Bread Financial
Downgraded byThe Goldman Sachs Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$32.81
-4.1%
$44.00 ➝ $32.00Neutral ➝ Sell
BILL Holdings, Inc. stock logo
BILL
BILL
Reiterated byNeedham & Company LLC
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$109.13
+0.5%
$200.00Buy ➝ Buy
BRP Group, Inc. stock logo
BRP
BRP Group
Target Lowered byJPMorgan Chase & Co.
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$23.00
-1.0%
$28.00 ➝ $27.00Neutral ➝ Neutral
Citigroup Inc. stock logo
C
Citigroup
Target Lowered byThe Goldman Sachs Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$40.96
-0.4%
$47.00 ➝ $41.00Neutral ➝ Neutral
Instacart (Maplebear Inc.) stock logo
CART
Instacart (Maplebear Inc.)
Initiated byGordon Haskett
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$29.36
-1.1%
Hold
Chubb Limited stock logo
CB
Chubb
Downgraded byJPMorgan Chase & Co.
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$205.62
-1.2%
$250.00Overweight ➝ Neutral
Carnival Co. & plc stock logo
CCL
Carnival Co. &
Reiterated byWilliam Blair
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$14.00
+2.0%
Outperform
Carnival Co. & plc stock logo
CCL
Carnival Co. &
Reiterated byTruist Financial
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$14.00
+2.0%
$17.00Hold ➝ Hold
Carnival Co. & plc stock logo
CCL
Carnival Co. &
Target Lowered byStifel Nicolaus
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$14.00
+2.0%
$22.00 ➝ $20.00Buy ➝ Buy
Carnival Co. & plc stock logo
CCL
Carnival Co. &
Target Lowered bySusquehanna
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$14.00
+2.0%
$17.00 ➝ $16.00Positive ➝ Positive
The Clorox Company stock logo
CLX
Clorox
Upgraded byDA Davidson
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$131.58
+0.4%
$152.00Neutral ➝ Buy
Mr. Cooper Group Inc. stock logo
COOP
Mr. Cooper Group
Upgraded byKeefe, Bruyette & Woods
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$54.05
+0.9%
$62.00 ➝ $65.00Market Perform ➝ Outperform
Chesapeake Utilities Co. stock logo
CPK
Chesapeake Utilities
Target Lowered byRoyal Bank of Canada
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$95.99
-1.8%
$124.00 ➝ $117.00Sector Perform ➝ Sector Perform
Credo Technology Group Holding Ltd stock logo
CRDO
Credo Technology Group
Initiated byBarclays
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$15.52
+1.8%
$18.00Overweight
Endava plc stock logo
DAVA
Endava
Target Lowered bySusquehanna
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$57.11
-0.4%
$100.00 ➝ $83.00Positive ➝ Positive
Datadog, Inc. stock logo
DDOG
Datadog
Upgraded byPiper Sandler
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$92.59
+1.6%
$88.00 ➝ $115.00Neutral ➝ Overweight
Datadog, Inc. stock logo
DDOG
Datadog
Initiated byUBS Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$92.59
+1.6%
$100.00Neutral
DraftKings Inc. stock logo
DKNG
DraftKings
Reiterated byNeedham & Company LLC
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$29.46
+0.1%
$44.00Buy ➝ Buy
Equifax Inc. stock logo
EFX
Equifax
Target Lowered byThe Goldman Sachs Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$181.91
-0.7%
$232.00 ➝ $208.00Neutral ➝ Neutral
Enphase Energy, Inc. stock logo
ENPH
Enphase Energy
Target Lowered byBarclays
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$120.00
-0.1%
$155.00 ➝ $140.00Equal Weight ➝ Equal Weight
Enanta Pharmaceuticals, Inc. stock logo
ENTA
Enanta Pharmaceuticals
Target Lowered byRoyal Bank of Canada
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$11.17
-1.2%
$25.00 ➝ $15.00Sector Perform ➝ Sector Perform
Esperion Therapeutics, Inc. stock logo
ESPR
Esperion Therapeutics
Reiterated byNeedham & Company LLC
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$0.99
+1.5%
$9.00Buy ➝ Buy
Etsy, Inc. stock logo
ETSY
Etsy
Initiated byWedbush
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$64.21
-0.6%
$70.00Neutral
Evogene Ltd. stock logo
EVGN
Evogene
Initiated byAlliance Global Partners
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$0.59
+1.1%
$1.85Buy
FedEx Co. stock logo
FDX
FedEx
Upgraded bySusquehanna
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$266.35
+0.5%
$225.00 ➝ $315.00Neutral ➝ Positive
Fidelity National Financial, Inc. stock logo
FNF
Fidelity National Financial
Downgraded byKeefe, Bruyette & Woods
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$40.79
-1.2%
$45.00 ➝ $43.00Outperform ➝ Market Perform
The GEO Group, Inc. stock logo
GEO
The GEO Group
Initiated byNorthland Securities
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$8.54
+4.4%
$14.00Outperform
Generac Holdings Inc. stock logo
GNRC
Generac
Reiterated byTruist Financial
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$108.37
-0.5%
$160.00Buy ➝ Buy
Global Payments Inc. stock logo
GPN
Global Payments
Initiated byMonness Crespi & Hardt
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$115.75
+0.3%
$175.00Buy
Goosehead Insurance, Inc stock logo
GSHD
Goosehead Insurance
Target Raised byJPMorgan Chase & Co.
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$74.29
-0.3%
$58.00 ➝ $60.00Neutral ➝ Neutral
Icosavax, Inc. stock logo
ICVX
Icosavax
Reiterated byOppenheimer
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$7.70
-0.6%
$25.00Outperform ➝ Outperform
Invitation Homes Inc. stock logo
INVH
Invitation Homes
Upgraded byEvercore ISI
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$31.81
+0.4%
$38.00 ➝ $37.00In-Line ➝ Outperform
LGI Homes, Inc. stock logo
LGIH
LGI Homes
Upgraded byBTIG Research
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$99.49
-1.4%
Sell ➝ Neutral
Lyra Therapeutics, Inc. stock logo
LYRA
Lyra Therapeutics
Reiterated byHC Wainwright
Subscribe to MarketBeat All Access for the recommendation accuracy rating
M. Caufield
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$4.00
+2.3%
$12.00Buy ➝ Buy
The Macerich Company stock logo
MAC
Macerich
Upgraded byPiper Sandler
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$11.19
+2.6%
$11.00 ➝ $12.00Underweight ➝ Neutral
Marathon Digital Holdings, Inc. stock logo
MARA
Marathon Digital
Initiated byNeedham & Company LLC
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$9.41
+10.7%
Hold
Maxeon Solar Technologies, Ltd. stock logo
MAXN
Maxeon Solar Technologies
Initiated byUBS Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$11.75
+1.4%
$13.00Neutral
Microsoft Co. stock logo
MSFT
Microsoft
Reiterated byJefferies Financial Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$316.89
+0.4%
$400.00Buy ➝ Buy
Microsoft Co. stock logo
MSFT
Microsoft
Reiterated byWells Fargo & Company
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$316.89
+0.4%
$400.00Overweight ➝ Overweight
nCino, Inc. stock logo
NCNO
nCino
Target Raised byNeedham & Company LLC
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$31.54
-0.8%
$34.00 ➝ $40.00Buy ➝ Buy
nCino, Inc. stock logo
NCNO
nCino
Downgraded byStephens
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$31.54
-0.8%
$34.00Overweight ➝ Equal Weight
NextEra Energy, Inc. stock logo
NEE
NextEra Energy
Target Lowered byThe Goldman Sachs Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$55.66
-2.8%
$83.00 ➝ $72.00Buy ➝ Buy
NextEra Energy Partners, LP stock logo
NEP
NextEra Energy Partners
Downgraded byWells Fargo & Company
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$28.62
-3.6%
$80.00 ➝ $33.00Overweight ➝ Equal Weight
Sunnova Energy International Inc. stock logo
NOVA
Sunnova Energy International
Initiated byUBS Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$10.46
-0.1%
$16.00Buy
Norfolk Southern Co. stock logo
NSC
Norfolk Southern
Downgraded byBank of America
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$190.96
-3.0%
$266.00 ➝ $215.00Buy ➝ Neutral
NatWest Group plc stock logo
NWG
NatWest Group
Downgraded byMorgan Stanley
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$5.75
-1.4%
Overweight ➝ Equal Weight
Nextracker Inc. stock logo
NXT
Nextracker
Initiated byUBS Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$40.89
+1.8%
$50.00Buy
PAR Technology Co. stock logo
PAR
PAR Technology
Target Raised byNeedham & Company LLC
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$39.56
+2.6%
$43.00 ➝ $47.00Buy ➝ Buy
PetIQ, Inc. stock logo
PETQ
PetIQ
Target Raised byTruist Financial
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$20.44
+3.8%
$25.00 ➝ $30.00Buy ➝ Buy
PennyMac Financial Services, Inc. stock logo
PFSI
PennyMac Financial Services
Upgraded byKeefe, Bruyette & Woods
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$68.07
+2.2%
$77.00 ➝ $81.00Market Perform ➝ Outperform
The Progressive Co. stock logo
PGR
Progressive
Target Raised byJPMorgan Chase & Co.
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$138.73
-0.4%
$146.00 ➝ $149.00Overweight ➝ Overweight
Plug Power Inc. stock logo
PLUG
Plug Power
Target Lowered byTruist Financial
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$7.48
-1.6%
$9.00 ➝ $8.00Hold ➝ Hold
Insulet Co. stock logo
PODD
Insulet
Upgraded byJefferies Financial Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$160.35
+0.5%
$260.00 ➝ $240.00Hold ➝ Buy
Patterson-UTI Energy, Inc. stock logo
PTEN
Patterson-UTI Energy
Target Raised byRaymond James
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$13.83
-0.1%
$18.00 ➝ $23.00Strong-Buy ➝ Strong-Buy
Rivian Automotive, Inc. stock logo
RIVN
Rivian Automotive
Upgraded byEvercore ISI
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$23.97
-1.3%
$35.00In-Line ➝ Outperform
Sandy Spring Bancorp, Inc. stock logo
SASR
Sandy Spring Bancorp
Downgraded byDA Davidson
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$20.81
-2.9%
$28.00 ➝ $22.00Buy ➝ Neutral
SolarEdge Technologies, Inc. stock logo
SEDG
SolarEdge Technologies
Downgraded byBarclays
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$125.40
-3.2%
$274.00 ➝ $152.00Overweight ➝ Equal Weight
Splunk Inc. stock logo
SPLK
Splunk
Reiterated byPiper Sandler
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$146.39
+0.1%
Overweight ➝ Neutral
Block, Inc. stock logo
SQ
Block
Initiated byMonness Crespi & Hardt
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$44.47
+0.5%
$70.00Buy
Shutterstock, Inc. stock logo
SSTK
Shutterstock
Reiterated byNeedham & Company LLC
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$38.22
+0.4%
$76.00Buy ➝ Buy
SunOpta Inc. stock logo
STKL
SunOpta
Initiated byMizuho
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$3.47
+3.0%
$9.00Buy
Sun Communities, Inc. stock logo
SUI
Sun Communities
Downgraded byBank of America
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$117.22
-0.9%
$148.00 ➝ $128.00Buy ➝ Neutral
Atlassian Co. stock logo
TEAM
Atlassian
Initiated byUBS Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$197.37
-2.1%
$225.00Neutral
TKO Group Holdings, Inc. stock logo
TKO
TKO Group
Initiated byBenchmark
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$84.82
+0.9%
$100.00Buy
Tandem Diabetes Care, Inc. stock logo
TNDM
Tandem Diabetes Care
Target Lowered byJefferies Financial Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$20.65
-0.6%
$47.00 ➝ $45.00Buy ➝ Buy
Toast, Inc. stock logo
TOST
Toast
Downgraded byMizuho
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$18.09
-3.4%
$30.00 ➝ $16.00Buy ➝ Neutral
United Parcel Service, Inc. stock logo
UPS
United Parcel Service
Target Lowered bySusquehanna
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$155.25
-0.4%
$173.00 ➝ $160.00Neutral ➝ Neutral
U.S. Bancorp stock logo
USB
U.S. Bancorp
Target Lowered byThe Goldman Sachs Group
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$32.86
-0.6%
$41.00 ➝ $35.00Neutral ➝ Neutral
Victory Capital Holdings, Inc. stock logo
VCTR
Victory Capital
Target Lowered byBMO Capital Markets
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$33.34
-1.5%
$47.00 ➝ $45.00Outperform ➝ Outperform
W. P. Carey Inc. stock logo
WPC
W. P. Carey
Target Lowered byRaymond James
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$54.15
+0.1%
$78.00 ➝ $63.00Outperform ➝ Outperform
United States Steel Co. stock logo
X
United States Steel
Upgraded byMorgan Stanley
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$33.03
+1.7%
$25.00 ➝ $40.00Equal Weight ➝ Overweight
Xylem Inc. stock logo
XYL
Xylem
Upgraded byMelius
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$91.92
+1.0%
$122.00Neutral ➝ Overweight
Zeta Global Holdings Corp. stock logo
ZETA
Zeta Global
Reiterated byNeedham & Company LLC
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$8.35
+3.9%
$13.00Buy ➝ Buy
ZoomInfo Technologies Inc. stock logo
ZI
ZoomInfo Technologies
Target Lowered byNeedham & Company LLC
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$16.39
-0.1%
$35.00 ➝ $25.00Buy ➝ Buy
Zscaler, Inc. stock logo
ZS
Zscaler
Upgraded byPiper Sandler
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$159.25
+2.4%
$160.00 ➝ $190.00Neutral ➝ Overweight
Zurn Elkay Water Solutions Co. stock logo
ZWS
Zurn Elkay Water Solutions
Reiterated byOppenheimer
Subscribe to MarketBeat All Access for the recommendation accuracy rating
$27.84
-0.6%
$33.00Outperform ➝ Outperform

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Key Points

  • Stock analysts give ratings to companies based on their research and insights.
  • Analysis comes from the buy side (fund companies, investment managers) or sell side (brokers, banks).
  • Analysts use different methodologies, so investors should always look into why a particular rating was given.
  • 5 stocks we like better than EXA)
Dice on financial graph: Are stock analyst ratings like rolling the dice? Find out.

You'll often hear a particular stock called a "buy" or "sell," but who exactly makes these calls? Ratings and recommendations come from stock analysts, who research different securities and work for various institutions, brokerage firms and other financial companies. 

Analyst ratings are designed to give additional information to investors beyond just what the company is saying, but are analyst ratings reliable? In this article, we'll discuss how to read analyst ratings, what goes into their decision-making process and how potential conflicts of interest influence analyst stock ratings.

What Are Analyst Ratings?

A stock rating is a simple heuristic given by analysts who review the firm's financial statements, listen to conference calls, chat with company executives and compare the stock to others in the industry or sector. Finally, an analyst uses all this information to produce a simple recommendation and price target.

When a public analyst goes on CNBC or the "Wall Street Journal" to give a "buy" or "sell" rating on a particular stock, they take all their research and pare it down into a simple designation. While there's no true consensus on what constitutes a buy or sell rating, an analyst usually does have "skin in the game" when devising ratings. 

Ratings often pair with price targets, which put a hard number on what the analysts believe the company stock should be worth. So, for example, you might see an analyst report something like, "Buy NVIDIA Inc. (NASDAQ: NVDA), price target $350," which means that particular analyst believes investors should buy NVDA shares up to a price of $350 per share.

Analyst ratings infographic: What you need to know

What Does a Stock Analyst Do?

A stock analyst is a market professional with the skills to interpret financial data and the connections within companies to speak on the record with higher-ups. Analysts generally fall into one of two different camps: buy-side or sell-side. These positions will seem similar, but they tend to be employed by various institutions and have different responsibilities in their particular market "territories." 

  • Buy-side analysts: Analysts on the buy side tend to work for funds, such as ETF providers or hedge funds. They don't dig as deeply into company financial data or conference calls as sell-siders. Instead, they focus on general areas or industries where their funds have vested interests. In addition, buy-side analysts often forge relationships with sell-side analysts for individual stock research. A buy-side analyst's primary goal is to find and utilize the most accurate and dependable sell-side analysts.
  • Sell-side analysts: If buy-side analysts work for funds (i.e., institutions that buy securities), you can probably guess which type of institution employs sell-side analysts. Brokers, banks and other firms that sell securities to investors use sell-side analysts to give reports to the public. While buy-side analysts also give ratings and price targets, the reported "buy" and "sell" ratings in financial media typically come from folks on the sell side.

Buy and sell-side analysts often use different rating systems when making their recommendations. You might even find two sell-side analysts with similar "buy" recommendations with vastly different price targets in the same stock. As a result, you'll need to familiarize yourself with the various methodologies analysts use to utilize their research correctly.

What Ratings Do Analysts Give?

Stock analyst ratings don't follow a strict structure, although most have roughly the same grading system for the securities they review. The labels may differ slightly (i.e., overweight vs. outperform), but the five most common analyst ratings go like this.

Buy

Analysts bullish on a particular security will give it a "buy" rating and set a price target above the current market price. In addition, if the analyst considers the stock one of the best in the industry or sector, you'll sometimes see a "strong buy" rating attached.

Hold

A "hold" rating is typically the lowest rating a sell-side analyst gives a stock. "Hold" means the analyst projects the stock to meet the return of the market averages, making it an unspectacular investment. Stocks rated "hold" may still have a price target above the current price, but it's not likely to surpass the return of a major index like the S&P 500.

Sell

Analysts are usually apprehensive about giving a stock a "sell" rating. For example, suppose a "hold" rating indicates indecision over the stock's future. In this scenario, a "sell" rating is issued when an analyst finds something unappealing, such as questionable accounting tactics or cratering sales growth.

Underperform

Analysts won't always give a firm "buy" or "sell" rating on stock but will instead label it "underperform" or "outperform." "Underperform" means the analyst expects the stock not to keep up with the market. It doesn't necessarily mean the analyst predicts a crash but indicates a lack of confidence in the shares.

Outperform

"Outperform" is the opposite of "underperform," meaning the analyst expects the stock to do better than the market average. It's usually considered a less confident rating than "buy."

Example of an Analyst Rating

You can use MarketBeat Analyst Ratings to find ranges and aggregates from buy- and sell-side analysts across the financial media. For example, here's a stock that analysts usually love: Alphabet Inc. (NASDAQ: GOOG).

Overview of stock analysis on GOOGUsing MarketBeat's tools, you can find ratings from prominent analysts from multiple periods. Alphabet is currently labeled a "moderate buy" based on MarketBeat's consensus from 17 analysts. You'll get the consensus price target and the highest and lowest from the analysts surveyed.

Marketbeat's tools detailing analyst ratings

Looking at analyst recommendations over time is another helpful tool. For example, you can view the different levels of coverage over the last few years, which analysts changed their ratings and how the price targets vary from month to month. If an analyst can't get a good read on a particular stock they've been covering, they might choose to withhold their grade, which is one reason why the number of available ratings can change over time.

Overview of analyst ratings on MarketBeatAnalysts from both sides of the aisle can be found on MarketBeat, ranging from large firms like JPMorgan Chase and Co. (NYSE: JPM) to smaller investment banks like Roth Capital. Some institutions like UBS Group offer both buy-side and sell-side ratings and analysis. These graphs show that even analysts with similar ratings can have vastly different price targets, so always understand the reasoning behind an analyst's view.

How to Use Analyst Ratings

Here are a few pointers on incorporating analyst ratings into your investment research.

Step 1: Don't rely on a single analyst.

Using an array of analysts (buy- and sell-side) gives inventors the most possible information. Don't just look for analysts with similar opinions as yourself — ensure you understand the pros and cons of each investment you make by incorporating positive and negative views, if possible.

Step 2: Compare analyst ratings across the industry or sector.

It's easy to slap a "buy" rating on a stock and predict a winner, but comparing stocks against others in the sector can offer insight into the rating. For example, if a stock is rated "buy" in the information technology sector, but a dozen others are rated "strong buy" by the same analyst, where is your capital best served?

Step 3: Consider your own goals and risk tolerance. 

You might find stocks rated "strong buy" in your research in sectors you wish to avoid. That's fine! There are thousands of securities across dozens of industries in the public markets, and you don't need to purchase every share that comes with a "buy" rating. Instead, stick to your investment plan.  

Step 4: Don't stubbornly stick to your original assessments.

Following your investment plan and using analyst ratings as guidelines are practical steps, but things can change over time. Today's "strong buy" stocks could be "strong sell" stocks down the road. Using an aggregate of analysts' ratings can help investors view stocks from a higher level. For example, if the number of "buy" ratings on a stock drops 40% over a few years, you might want to take a closer look at that particular company.

Why Are Analyst Ratings Important?

Checking out analyst ratings isn't a necessary step for investing, but it can be helpful for those looking to dig deep into an asset's prospects. Analyst research often has quotes from company executives, questions from conference calls and in-depth reporting on the company's balance sheet, income statement and other essential documents. Analysis like this is complex for individual investors to do on their own, especially considering how frequently analysts interact with the executives they cover. But access often comes with a downside, which we discuss more below.

How Accurate Are Analyst Ratings?

Both buy and sell-side analysts strive for accuracy because giving consistently wrong commendations can be hazardous for job security. However, investors should be aware that analysts might not always have the best interest of the retail investor at heart when making their recommendations.

For starters, being an analyst requires access to company employees and management. Analysts typically ask questions during conference calls and speak with C-suite executives on the record about their firms' prospects. Executives usually don't want to hear adverse reports about their companies, so analysts are incentivized to paint a rosy picture to retain access. The SEC has been questioning the authenticity of analyst ratings (especially on the sell-side) since 2002 when it asked bluntly, "Why are there so few sell ratings?"

Of course, there are other areas of the securities analysis market to face scrutiny. If you recall, during the 2008 financial crisis, the biggest credit rating agencies were all held to the fire due to claims that conflicts of interest influenced their ratings. The biggest rating agencies in the world were accused of "misrepresenting the risks associated with mortgage-backed securities." Remember, analyst ratings aren't spat out by computer algorithms but by living, breathing people who may have agendas other than providing the most precise and accurate reports on a company's future prospects.

Analyst Ratings Can Guide Investors, but Don't Treat Them as Gospel

Consider each type of investment research or advice in collaboration. Even the most accurate and thoughtful analysts get things wrong, plus ratings are frequently besieged with conflicts of interest. But analyst coverage does offer research that's difficult to get elsewhere, and using an array of analyst reports can give investors a deeper understanding of the securities they buy.

FAQs

Still have questions about analyst ratings? Here are a few answers to some common points of discussion:

What are analyst ratings?

Analyst ratings are the "buy" and "sell" labels, plus price targets, that investment researchers attach to specific securities. These ratings are based on financial data, earnings reports and conversations with company executives.

Should you trust analyst ratings?

Analyst ratings provide plenty of helpful information, but you shouldn't use an analyst's "buy" rating as the sole reason you purchase a security. Analysts aren't immune to conflicts of interest or outside parties' influence, so ensure you always understand why a stock was labeled a "buy" or "sell."

What does an analyst rating tell you about a stock? 

Ratings give investors the analyst's overall opinion about a particular stock and price targets based on the company's valuation and prospects. Analysts often attend conference calls, ask questions and provide in-depth information about companies that are difficult to acquire elsewhere.


Stock Ratings Reports and Tools

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