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Microsoft (MSFT) has an average brokerage recommendation (ABR) of 1.13, indicating a general consensus of Strong Buy to Buy, based on assessments from 40 brokerage firms. Specifically, 36 recommendations are categorized as Strong Buy, while 3 are classified as Buy, representing 90% and 7.5% of the total recommendations, respectively.
Despite the positive ratings, research suggests that brokerage recommendations are often overly optimistic, with one study showing a ratio of five Strong Buy recommendations for each Strong Sell. Consequently, investors are advised to complement these recommendations with other analyses to ensure informed decision-making.
Currently, Microsoft holds a Zacks Rank of #3 (Hold), reflecting consistent earnings estimates of $13.04 for the current year, signaling potential performance aligned with broader market trends. Investors may want to exercise caution despite the high ABR ratings.
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