Analysts are optimistic about Citigroup’s stock, but should you invest now?
These analysts often influence stock prices with their recommendations. Citigroup has an average rating of 1.67, which is pretty close to a Strong Buy. Out of 21 firms, 13 say Strong Buy and 2 say Buy. That’s a solid majority, right?
But hold on! Just because they’re saying buy doesn’t mean you should rush in. Studies show that these recommendations don’t always lead to the best stock picks. Sometimes, brokerage firms have their own interests at heart, which can skew their ratings.
For instance, they tend to give way more Strong Buy ratings than Strong Sell ones. So, it’s smart to use this info to back up your own research instead of relying on it completely.
There’s also something called the Zacks Rank, which is a different beast altogether. It’s based on earnings estimates and has a better track record for predicting stock performance.
Recently, Citigroup’s earnings estimates have gone up by 3.9%, which is a good sign. This has led to a Zacks Rank of #2, meaning it’s still a Buy. So, while the analysts are optimistic, it’s wise to do your homework and consider all angles before investing.