Microsoft’s average brokerage recommendation (ABR) is 1.18, indicating a strong buy on a scale of 1 to 5, based on recommendations from 39 brokerage firms. Of these, 34 are rated as Strong Buy (87.2%), and three as Buy (7.7%). However, analysts have recently expressed growing pessimism about Microsoft’s earnings, leading to a Zacks Rank #4 (Sell) as of October 2023, with a consensus earnings estimate of $13.04.
Despite the ABR suggesting a buying opportunity, analysts’ vested interests may skew their recommendations, making independent research crucial. The Zacks Rank, based on earnings estimate revisions, provides a more timely and potentially reliable indicator for investors compared to brokerage firm recommendations.
