Sell-side analysts work at investment banks and are the ones who will issue recommendations of "strong buy," "outperform," "neutral," or "sell." Buy-side analysts instead work for investment firms or funds and choose investments that coincide with the fund's investment strategy."}},"@type": "Question","name": "Why Are Some Recommendations Made as "Outperform" and Others as "Buy"?","acceptedAnswer": "@type": "Answer","text": "Among sell-side firms, there is no standardized recommendation system, with different investment banks using their own internal rating scale. Thus, one bank may issue a "buy" rating that is equivalent to another bank's rating of "outperform." In both cases, the analysts have determined that the stock in question should have returns in excess of the broader market.","@type": "Question","name": "Should I Sell a Stock I Own If It Receives an Analysts Rating of "Sell"?","acceptedAnswer": "@type": "Answer","text": "Analysts' ratings are arrived at based on fundamental and econometric analysis of a company and its future prospects. But, analysts can sometimes be wrong or make a mistake. As a result, you will want to consider the consensus of recommendations from several professional analysts. If they all (or mostly) recommend "sell," you may want to consider reducing or closing out your position in that stock,"]}]}] EducationGeneralDictionaryEconomicsCorporate FinanceRoth IRAStocksMutual FundsETFs401(k)Investing/TradingInvesting EssentialsFundamental AnalysisPortfolio ManagementTrading EssentialsTechnical AnalysisRisk ManagementNewsCompany NewsMarkets NewsCryptocurrency NewsPersonal Finance NewsEconomic NewsGovernment NewsSimulatorYour MoneyPersonal FinanceWealth ManagementBudgeting/SavingBankingCredit CardsHome OwnershipRetirement PlanningTaxesInsuranceReviews & RatingsBest Online BrokersBest Savings AccountsBest Home WarrantiesBest Credit CardsBest Personal LoansBest Student LoansBest Life InsuranceBest Auto InsuranceAdvisorsYour PracticePractice ManagementFinancial Advisor CareersInvestopedia 100Wealth ManagementPortfolio ConstructionFinancial PlanningAcademyPopular CoursesInvesting for BeginnersBecome a Day TraderTrading for BeginnersTechnical AnalysisCourses by TopicAll CoursesTrading CoursesInvesting CoursesFinancial Professional CoursesSubmitTable of ContentsExpandTable of ContentsThe Scale of RatingsMapping the BasicsExamples of Analyst RatingsFAQsFundamental AnalysisToolsUnderstanding Buy, Sell, and Hold Ratings of Stock AnalystsByMitchell GrantFull Bio LinkedIn Mitchell Grant is a self-taught investor with over 5 years of experience as a financial trader. He is a financial content strategist and creative content editor.Learn about our editorial policiesUpdated July 12, 2022Reviewed byJeFreda R. Brown Reviewed byJeFreda R. BrownFull Bio LinkedIn Twitter Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of Xaris Financial Enterprises and a course facilitator for Cornell University.Learn about our Financial Review BoardFact checked byKirsten Rohrs SchmittIn order to reach an opinion and communicate the value and volatility of a covered security, analysts research public financial statements, listen in on conference calls, and talk to managers and the customers of a company, typically in an attempt to come up with findings for a research report.
Analysts' ratings are arrived at based on fundamental and econometric analysis of a company and its future prospects. But, analysts can sometimes be wrong or make a mistake. As a result, you will want to consider the consensus of recommendations from several professional analysts. If they all (or mostly) recommend "sell," you may want to consider reducing or closing out your position in that stock,
Why this analyst who advises to ‘sell’ Apple is dead wrong
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