Financial Analysts (usually employed by investment banks) analyze industries and company fundamentals and release investment recommendations based on their findings. The Analyst Consensus for a stock is either a Strong Buy, Moderate Buy, Hold, Moderate Sell, or Strong Sell.
Analysts’ consensus types
Strong buy is related to analysts’ recommendations and consensus on a specific stock. A strong buy means analysts’ expectation that the stock will far exceed the average return on the stock market.
Moderate buy or outperform meanings the analysts’ recommendation the stock is expected to do a better performance than the stock market.
Hold is a recommendation of analysts not to buy or sell a security or stock. Hold recommendation is usually due to strong volatility in the stock market, performance of other stocks in the same sector, or uncertainty about the stock
Moderate sell is a recommendation of analysts as the stock is expected to perform slightly lower than the overall stock market.
Strong sell is a recommendation of analysts to sell the stock as it is expected to perform low compared to the stock market.
Best Analysts Consensus
The consensus of the Best Analysts on a stock is based only on those Wall Street analysts which recommendations were most accurate.
The performance measurement incorporates the analysts’ success rates and average returns and is based on the TipRanks Star Ranking™ system.
TipRanks Ranking system incorporates all analyst recommendations since January 2009. Through various calculations and statistical analysis, TipRanks can rank analysts according to their performance; which is a combination of recommendations’ Success Rate and Profitability. Therefore, investors choose which analysts to listen to according to their ranking or simply see the overall Analyst Consensus for a stock.