In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). Zacks Rank Should Not Be Confused With ABRĪlthough both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. 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. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.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. While the ABR calls for buying Plug Power, it may not be wise to make an investment decision solely based on this information. Strong Buy and Buy respectively account for 63.6% and 4.6% of all recommendations.Ĭheck price target & stock forecast for Plug Power here> Of the 22 recommendations that derive the current ABR, 14 are Strong Buy and one is Buy. An ABR of 1.68 approximates between Strong Buy and Buy. Plug Power currently has an average brokerage recommendation (ABR) of 1.68, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 22 brokerage firms.
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