Is Jabil (JBL) a Buy as Wall Street Analysts Look Optimistic?

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?

Let's take a look at what these Wall Street heavyweights have to say about Jabil (JBL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Jabil currently has an average brokerage recommendation (ABR) of 1.33, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by six brokerage firms. An ABR of 1.33 approximates between Strong Buy and Buy.

Of the six recommendations that derive the current ABR, five are Strong Buy, representing 83.3% of all recommendations.

Brokerage Recommendation Trends for JBL

Check price target & stock forecast for Jabil here>>>

While the ABR calls for buying Jabil, 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.