Wall Street analysts are bullish on Meta Platforms, but should you invest now?
New York: So, Wall Street analysts are buzzing about Meta Platforms, right? They’re saying it’s a good time to buy. But let’s dig a little deeper before jumping in.
Meta’s average brokerage recommendation is sitting at 1.38, which is pretty close to a Strong Buy. Out of 52 firms, 43 are all in for a Strong Buy. That’s a solid majority, but it’s worth noting that not all recommendations are created equal.
While the numbers look good, relying solely on these ratings can be a bit risky. Studies show that brokerage recommendations don’t always lead to the best stock picks. Sometimes, they’re more about the firm’s interests than yours.
For instance, brokerage firms tend to favor positive ratings. For every “Strong Sell,” there are about five “Strong Buy” recommendations. So, it’s smart to use this info to back up your own research instead of taking it at face value.
Now, there’s this tool called Zacks Rank that’s pretty handy. It’s based on earnings estimate revisions and has a solid track record. It categorizes stocks from Strong Buy to Strong Sell, and it’s a good way to gauge where a stock might be headed.
Meta’s earnings estimates have recently gone up a bit, which is a good sign. Analysts are feeling optimistic, and that could mean the stock might rise soon. Right now, it has a Zacks Rank of #2, which is a Buy.
So, while the brokers are saying “buy,” it’s always best to do your homework. The Buy-equivalent recommendation for Meta could be a helpful guide, but make sure it aligns with your own strategy.
