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23 minutes ago
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Should You Invest in Schlumberger (SLB) Based on Bullish Wall Street Views?
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? Let's take a look at what these Wall Street heavyweights have to say about Schlumberger (SLB) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Schlumberger currently has an average brokerage recommendation (ABR) of 1.40, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.40 approximates between Strong Buy and Buy. Of the 25 recommendations that derive the current ABR, 18 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 72% and 16% of all recommendations. Check price target & stock forecast for Schlumberger here>>> While the ABR calls for buying Schlumberger, 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. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether. Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. In terms of earnings estimate revisions for Schlumberger, the Zacks Consensus Estimate for the current year has declined 1.5% over the past month to $3.04. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Schlumberger. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for Schlumberger with a grain of salt. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schlumberger Limited (SLB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
23 minutes ago
- Yahoo
Are Finance Stocks Lagging Sierra Bancorp (BSRR) This Year?
Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Sierra Bancorp (BSRR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question. Sierra Bancorp is a member of the Finance sector. This group includes 870 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Sierra Bancorp is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for BSRR's full-year earnings has moved 2.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend. Based on the most recent data, BSRR has returned 11.5% so far this year. Meanwhile, stocks in the Finance group have gained about 9.9% on average. This means that Sierra Bancorp is performing better than its sector in terms of year-to-date returns. One other Finance stock that has outperformed the sector so far this year is Commonwealth Bank of Australia Sponsored ADR (CMWAY). The stock is up 24.2% year-to-date. Over the past three months, Commonwealth Bank of Australia Sponsored ADR's consensus EPS estimate for the current year has increased 4.5%. The stock currently has a Zacks Rank #2 (Buy). To break things down more, Sierra Bancorp belongs to the Banks - West industry, a group that includes 28 individual companies and currently sits at #43 in the Zacks Industry Rank. Stocks in this group have gained about 3% so far this year, so BSRR is performing better this group in terms of year-to-date returns. In contrast, Commonwealth Bank of Australia Sponsored ADR falls under the Banks - Foreign industry. Currently, this industry has 67 stocks and is ranked #25. Since the beginning of the year, the industry has moved +27.4%. Investors with an interest in Finance stocks should continue to track Sierra Bancorp and Commonwealth Bank of Australia Sponsored ADR. These stocks will be looking to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sierra Bancorp (BSRR) : Free Stock Analysis Report Commonwealth Bank of Australia Sponsored ADR (CMWAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
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24 minutes ago
- Yahoo
Are Computer and Technology Stocks Lagging Bentley Systems (BSY) This Year?
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Bentley Systems, Incorporated (BSY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question. Bentley Systems, Incorporated is a member of the Computer and Technology sector. This group includes 607 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Bentley Systems, Incorporated is currently sporting a Zacks Rank of #2 (Buy). Over the past three months, the Zacks Consensus Estimate for BSY's full-year earnings has moved 4.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. According to our latest data, BSY has moved about 18.5% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of 8.2%. This means that Bentley Systems, Incorporated is performing better than its sector in terms of year-to-date returns. One other Computer and Technology stock that has outperformed the sector so far this year is Flex (FLEX). The stock is up 34.6% year-to-date. In Flex's case, the consensus EPS estimate for the current year increased 1.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Breaking things down more, Bentley Systems, Incorporated is a member of the Internet - Software industry, which includes 173 individual companies and currently sits at #47 in the Zacks Industry Rank. This group has gained an average of 16.2% so far this year, so BSY is performing better in this area. Flex, however, belongs to the Electronics - Miscellaneous Products industry. Currently, this 37-stock industry is ranked #165. The industry has moved +16.8% so far this year. Bentley Systems, Incorporated and Flex could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bentley Systems, Incorporated (BSY) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
