Brokers Suggest Investing in Enterprise Products (EPD): Read This Before Placing a Bet

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Enterprise Products Partners (EPD).

Enterprise Products currently has an average brokerage recommendation (ABR) of 1.50, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.50 approximates between Strong Buy and Buy.

Of the 12 recommendations that derive the current ABR, nine are Strong Buy, representing 75% of all recommendations.

Brokerage Recommendation Trends for EPD

Check price target & stock forecast for Enterprise Products here>>>

While the ABR calls for buying Enterprise Products, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.