How to Invest Around Analyst Upgrades and Downgrades
Jun 12 08:00
ReplayDear mooers, Sarge is back again to our live-streaming event. This time, we will discuss the impact of analysts' upgrade or downgrade, and how to use the resulting price moves in your investing journey?
You are welcome to ask any questions related to this topic. Stephen will address your inquiries during the live broadcast. Submit a complete question under this post, and you'll receive 100 Moo points, plus another 1,000 if we use your question on air.
[Stephen's Full Bio]
Stephen "Sarge" Guilfoyle is the founder and President of Sarge986 LLC, a family-run trading operation. An NYSE floor trader for over 30 years, Guilfoyle has served as the Chief Market Economist for Stuart Frankel & Co., the U.S. Economist for Meridian Equity Partners, and as a Vice President in Block Trading and Investment Banking with Credit Suisse over the years. Guilfoyle earned his nickname "Sarge" while serving as an actual sergeant in reserve components of the U.S. Marine Corps and U.S. Army while simultaneously working on Wall Street. He self-identifies as a day trader, long-term investor, and anything. He believes in removing emotion from the decision-making process and trusting the data. Follow Stephen "Sarge" Guilfoyle on the moomoo community for a mix of fundamentals, technical analysis, economic commentary, and trading ideas.
Stephen "Sarge" Guilfoyle is the founder and President of Sarge986 LLC, a family-run trading operation. An NYSE floor trader for over 30 years, Guilfoyle has served as the Chief Market Economist for Stuart Frankel & Co., the U.S. Economist for Meridian Equity Partners, and as a Vice President in Block Trading and Investment Banking with Credit Suisse over the years. Guilfoyle earned his nickname "Sarge" while serving as an actual sergeant in reserve components of the U.S. Marine Corps and U.S. Army while simultaneously working on Wall Street. He self-identifies as a day trader, long-term investor, and anything. He believes in removing emotion from the decision-making process and trusting the data. Follow Stephen "Sarge" Guilfoyle on the moomoo community for a mix of fundamentals, technical analysis, economic commentary, and trading ideas.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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102362254 : Question : How can long-term investors use analyst upgrades and downgrades wisely, knowing they might cause short-term ups and downs, but also have lasting effects on their investments?
mr_cashcow : Hello again Sarge, thanks again for answering my previous question![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
My question this time round is how do u determine the fidelity of an analyst upgrade/downgrade of a stock to the actual data presented or available? Basically I feel we shouldn't just take the face value of what an analyst said so what other key factors should we also consider when looking at various analyst ratings?
puddy1 : Qn1: what factors are considered for analyst evaluation on upgrade/downgrade and does the maker condition (bull/bear market) affect the analyst ratings on stock prices?
Qn2: are there specific positive indicators or red flags one should look out for when evaluating analyst’ reports?
ZnWC : Thanks Sarge for the previous insight live event![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Here are my questions:
1. There are many stock market analysts working in banks or financial companies. As the company also owns stocks, will the analysis be independent and reliable?
For example JP Morgan who holds Xpeng share and gives ratings and target prices for the stock. Isn't there a conflict of interest?
2. There are many internet resources that are popular in giving stock ratings for example Motley Fool, Investors Place and Yahoo Finance Zack Ranking. How useful are their recommendations and forecasts?
3. The consensus ratings of a stock can be very different ranging from buy to sell. How do we choose? Are there ways we can verify their analysis?
Dadacai : Hi Sarge, to what degree can we trust analysts’ target price? Do you trust certain analysts more than others? Is consensus among different analysts a good gauge of the reliability of the predictions? I have often found the target prices given by analysts to be overly optimistic. Yet there were also occasions where the stock price declined due to a downgrade by analysts so we cannot totally discount their effect, even if the analyses may not be accurate.
Vasuli : A lot of price targets don't usually mention the timeline in which that price is supposed to be hit...by what timeframe we should consider that the analyst projection isn't gonna hit and cut losses or book profit
doctorpot1 : Given that analysts' upgrades and downgrades can significantly influence stock prices, how can investors differentiate between genuine insights and potential market manipulation, and what strategies can be employed to capitalize on these ratings changes without falling prey to short-term volatility?
ilovesoya : Analyst ratings are often time lagging after a series of events. Is it wise to trade after analyst reports are released?