Basics

An analyst rating is a one-word recommendation given to a stock by a financial analyst, indicating their view on whether the stock is a good buy, sell, or hold. These ratings help investors understand the analyst’s perspective on a stock’s future performance.

Analysts are usually operating with the following or similar categories

strong_buy: The analyst believes the stock is undervalued and has potential for significant growth, making it a good investment opportunity.
buy: A more positive rating than hold, indicating the stock is expected to outperform its benchmark index.
hold: Good enough to keep in a portfolio but not worthy of additional investment.
sell: A more negative rating than hold, suggesting the stock is expected to underperform its benchmark index.
strong_sell: The analyst believes the stock is overvalued and likely to decline in price, suggesting it’s best to sell.

The SEC and FINRA have rules in place to help make sure there is objectivity and transparency in research reports. Any recommendations, ratings, or price targets in reports must have a reasonable basis. Ratings should reflect research outcomes and be based on facts, independent of any conflicts of interest that the firm or its employees may have.

Examples

With this data, you can create data widgets. You can also analyze the data to drill further down to firms and dates of their research reports.

Analyst ratings consensus visualized by Ainvest

Price target consensus vizualized by Ainvest

Visualized by Ainvest