![]() ![]() In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.ĪBR Should Not Be Confused With Zacks Rank Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.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. The ABR suggests buying ChargePoint Holdings, Inc., but making an investment decision solely on the basis of this information might not be a good idea. Check price target & stock forecast for ChargePoint Holdings, Inc. ![]()
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