HomeMost PopularTech Stocks Opera Limited Sponsored ADR (OPRA): Uncover the Truth Behind Wall...

Opera Limited Sponsored ADR (OPRA): Uncover the Truth Behind Wall Street’s Recommendations

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When investors ponder over buying, selling, or holding a stock, the endorsement of analysts often wields significant influence. However, the key question remains: are these brokerage recommendations truly decisive?

Before evaluating the reliability of brokerage recommendations and how to leverage them to oneโ€™s advantage, letโ€™s delve into the prevailing perceptions of Opera Limited Sponsored ADR (OPRA) among Wall Street pundits.

Unveiling Wall Streetโ€™s Sentiments

Currently, Opera Limited Sponsored ADR bears an Average Brokerage Recommendation (ABR) of 1.00, reflecting a Strong Buy consensus. This rating, derived from the recommendations (Buy, Hold, Sell, etc.) of four brokerage firms, strongly leans towards a bullish stance.

Of the quartet of recommendations, all four stand firm in advocating a Strong Buy, summarizing 100% of all endorsements.

Scrutinizing Brokerage Recommendations

While the ABR signals an inclination towards acquiring Opera Limited Sponsored ADR, relying solely on this information for investment decisions might be unwise. Multiple studies have highlighted the limited success of brokerage recommendations in identifying stocks with the most promising price appreciation potential.

Why is this? Brokerage firmsโ€™ vested interests in the stocks they cover often result in a noticeably positive bias from their analysts in their ratings. Studies reveal that for each โ€œStrong Sellโ€ recommendation, brokerage firms assign five โ€œStrong Buyโ€ recommendations โ€” suggesting the interests of these institutions arenโ€™t always aligned with those of retail investors. Hence, itโ€™s prudent to validate this data with oneโ€™s own analysis or utilize a proven tool for predicting stock movements.

The Power of Zacks Rank

With a robust audited track record, the Zacks Rank serves as our proprietary stock rating tool, classifying stocks into five categories. This tool, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has proven to be a reliable indicator of a stockโ€™s near-term price performance. Therefore, combining the ABR with the Zacks Rank could aid in making a judicious investment decision.

Differentiating Zacks Rank from ABR

Itโ€™s important to note that while both ABR and Zacks Rank might appear on a 1-5 scale, they are inherently distinct metrics. The ABR solely hinges on broker recommendations and is often depicted in decimals. Conversely, the Zacks Rank is a quantitative model reliant on earnings estimate revisions, showcased in whole numbers (1-5).

Analysts working for brokerage firms have a historical tendency of exhibiting an overly optimistic bias in their recommendations, driven by their employersโ€™ vested interests. On the contrary, the Zacks Rank revolves around earnings estimate revisions, demonstrating a compelling correlation with near-term stock price movements.

Validating the Investment: Is OPRA Worth It?

Reviewing the earnings estimate revisions for Opera Limited Sponsored ADR, the Zacks Consensus Estimate for the current year remains steady at $0.68 over the past month. This consistent outlook on the companyโ€™s earnings prospects leads to a Zacks Rank #3 (Hold) for Opera Limited Sponsored ADR.

Itโ€™s advisable to approach the Buy-equivalent ABR for Opera Limited Sponsored ADR with a degree of caution in light of these considerations.

Ref: Complete List of Todayโ€™s Zacks Rank #1 (Strong Buy) Stocks

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

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