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Is Alphabet Inc. (GOOG) a Golden Opportunity or a Bull Trap?

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  Is Alphabet Inc. (GOOG) a Golden Opportunity or a Bull Trap?

When it comes to making investment decisions, many people look to Wall Street analysts for advice. However, let’s dive into the reliability of these recommendations and discover the best way to use them to your advantage when it comes to Alphabet Inc. (GOOG).

The Brokerage Buzz on GOOG

With an average brokerage recommendation (ABR) of 1.39, with 29 strong buy and three buy recommendations out of a total of 38, it seems like Wall Street is singing praises for Alphabet Inc.

Once we delve deeper and examine the long history of buy recommendations outweighing the sell recommendations by an astonishing margin, we start to see a different picture.

Do Analyst Recommendations Hold True?

Analyst recommendations, driven by the interests of the brokerage firms, tend to favor stocks they cover. This conflict of interest often leads to a skewed positive bias, making their recommendations unreliable for individual investors.

So, should you entirely discard broker recommendations to the stock market’s dumpster fire? Not so quick, partner. We can use an alternative tool like Zacks Rank for making shrewd investment choices.

Zacks Rank: The Knight in Shining Armor

Zacks Rank stands out as the unsung hero, relying on numerical data and earnings estimates. Unlike ABR, the Zacks Rank tool is not clouded by conflicted interests, providing a clearer view of a stock’s potential.

One key thing to note here is that Zacks Rank is not the same as ABR, and its credible rating system is not influenced by vested interests, which brings hope to the beleaguered investors.

Is GOOG a Gem or a Quicksand?

The Zacks Consensus Estimate for Alphabet Inc. shows a surge of 1.2% over the past month to $5.82. The soaring agreement among analysts in revising EPS estimates upward has awarded Alphabet Inc. with a Zacks Rank #2 (Buy).

So, what’s the final verdict? The Buy-equivalent ABR for Alphabet Inc. might provide crucial guidance to investors looking to make a move in the stock market.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.