Wall Street Analysts See StoneCo Ltd. (STNE) as a Buy: Should You Invest?
Nasdaq When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
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 StoneCo Ltd. (STNE).
StoneCo Ltd. currently has an average brokerage recommendation (ABR) of 2.00, 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 2.00 indicates Buy.
Of the 12 recommendations that derive the current ABR, six are Strong Buy, representing 50% of all recommendations.
Brokerage Recommendation Trends for STNE
Check price target & stock forecast for StoneCo Ltd. here>>>
The ABR suggests buying StoneCo Ltd., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
