Moneyzine
Contents
/Investment Guides /Strong Buy (Analyst Recommendation)

Strong Buy (Analyst Recommendation)

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 21st, 2023
Advertiser Disclosure

Definition

The term strong buy is used to identify the stocks a sell-side analyst believes will significantly outperform the overall market in the near term. A strong buy is a bullish recommendation, and is associated with a stock the analyst feels their clients should hold in their portfolio.

Explanation

Sell-side analysts are responsible for generating periodic research reports for their clients. These reports highlight recent company news as well as projections of future earnings developed through the use of proprietary models. While these reports contain a lot of detail, they also contain a summary recommendation.

Analyst recommendations are not standardized, but they can be generalized. A strong buy is the maximum recommendation assigned to a stock. These are the companies the analyst believes will outperform the market, industry and competitors. In addition to strong buy, bullish recommendations might include: Buy, Outperformer, Sector Outperformer, and Overweight. The analyst is essentially telling the investor the company's stock can be expected to significantly outperform the market over the next twelve to twenty-four months.

Related Terms

accumulate, buy-side analyst, sell-side analyst, hold, underperform, strong sell

Explore Investing Further

Related Content

  • Biden Or Trump: Who Is Better For The Economy And Stocks?
    Yup. This is one of those articles. It's an election year, and here in the U.S., we get to decide which old dude who’s been alive long enough to remember when there were only 48 states in the U.S. will be the leader of the free world.
    March 19th, 2024
  • When it comes to strategic business planning, accounting is front and center, shaping the course of action. At least it should be.
    March 14th, 2024
  • DRIP Brokers: Best Brokers for Dividend Investing for April 2024
    Reinvesting dividends could mean compound growth for your portfolio. But reinvesting them manually can be a hassle. This is why you could benefit from a dividend reinvestment plan (DRIP).
    March 12th, 2024
  • How To Invest in Real Estate Without Becoming a Landlord
    We all know that in order to build wealth and prepare for retirement, investing is the key. However, it can be hard to figure out what to invest in and how to put your money to good use. One of the most talked about ways to build wealth is owning property and being a landlord to bring in passive income. But what if you don’t want to do that? You can still invest in real estate!
    March 6th, 2024
  • Investing In Nature: The Closest You'll Get To Your Money Growing On Trees
    ESG (Environmental, Social, and Governance) has become a polluted word for many traders and investors - but that doesn't mean it's going completely away. Nor does that mean you can't profit from nature or sustainable practices. But there are some opportunities in the regenerative ag, conservation, and green real estate spaces.
    February 29th, 2024

Contributors

Moneyzine 2024. All Rights Reserved.