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Is Amazon (AMZN) 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 Amazon (AMZN - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Amazon currently has an average brokerage recommendation (ABR) of 1.10, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 50 brokerage firms.
An ABR of 1.10 approximates between Strong Buy and Buy.
Of the 50 recommendations that derive the current ABR, 46 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 92% and 6% of all recommendations.
Brokerage Recommendation Trends for AMZN
Check price target & stock forecast for Amazon
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