Analysts’ upgrades & downgrades can cause dramatic swings in a stock’s price. It is possible for investors to make short-term profits from these stocks, but analysts are liable to downgrade them to make investors lose money.
Analysts generally rate stocks in three categories:
When an analyst recommends “BUY”, they believe the stock will beat the market. Some analysts also refer to the term “buy” as Overweight or Outperform.
When analysts do not expect a stock to perform better or worse than the market, they can suggest a “Hold” for that stock. It is not recommended to buy or sell a stock based on a Hold rating. Holds can also be called equal weights or market performance by analysts.
Analysts rate stocks as “Sell” when they believe they will fall short of the market. Although it is uncommon for analysts to rate stocks as “Sell”, underperform and underweight may also be used instead of “Sell”.
With this outlook, analysts have a consensus recommendation rating of 2.20 for the stock, suggesting that investors Overweight the stock. RBC Capital Mkts issued a stock update for DoorDash Inc. (NYSE: DASH) on December 02, 2022, in which the firm assigned a “Sector Perform” rating. Oppenheimer on November 07, 2022, rated the stock as “an Outperform,”. 29 analysts offering their rating for the stock are split like this: 14 of the 29 rate it as a Hold; 14 see it as a buy, while 1 says it is overweight. Although bearish, it is notable that the stock is well above its 200-day simple moving average by -23.90%, while it is 7.25% above and -2.26% below its SMA50 and SMA20 respectively. The volume of shares traded in the last session stands at 4.72 million against a 3-month average of 5.82M.
Looking at the support for Rio Tinto plc (NYSE: RIO), a number of firms have released research notes about the stock. Citigroup stated their Neutral rating for the stock in a research note on December 02, 2022. Macquarie coverage for the Rio Tinto Group (RIO) stock in a research note released on August 24, 2022, offered a Neutral rating. Macquarie coverage for the Rio Tinto Group (RIO) stock in a research note released on August 24, 2022, offered a Neutral rating. Berenberg was of the view on July 07, 2022, that the stock is Sell, while Credit Suisse gave the stock Outperform rating on July 06, 2022. Morgan Stanley on their part issued an Equal-Weight rating on June 23, 2022.
On December 02, 2022, several analysts downgraded their positions on the Appharvest Inc (NASDAQ: APPH) stock and predicted its performance to their investors. The analysts at Oppenheimer believe APPH is still a Perform. Another analyst that has an Equal-weight rating for APPH is Barclays. Oppenheimer initiated their Outperform position on the stock ($10) and Barclays also initiated its Overweight position on the stock ($25).