Strong Buy: What it is, How it Works, When to use it (2024)

FAQs

What is the meaning of strong buy? ›

A strong buy is an analyst's recommendation to purchase shares of a company that, based on analysis, is expected to dramatically outperform in the short- to mid-term. A strong buy rating is usually accompanied by an extremely optimistic price target on the stock, such as a 30% to 50% gain over the coming 12 months.

TipRanks default settings measure analyst performance over no benchmark, meaning that any movement in the stock is calculated as a gain or loss for the analyst. For example, if an analyst recommends buying shares of a stock when it is at $20 and the stock climbs to $25, the analyst earns a 25% profit on the call.

“Strong buy” is the rating analysts use for stocks they believe will perform exceptionally well. Analysts rate a stock “outperform” if they believe it will perform better than competitors in the same sector in the coming year.

Strong buy means analysts expect the stock to far exceed the average return on the stock market. Moderate buy means the stock is expected to outperform the overall market. Hold means analysts recommend to neither buy nor sell the stock.

Be killed; die. For example, By the time we could get to the hospital, he had bought it . Originating during World War I as military slang, this term later was extended to peacetime forms of death. A later slang equivalent is buy the farm , dating from about 1950.

: something of value at a favorable price. especially : bargain. It's a real buy at that price. 2. : an act of acquiring possession, ownership, or rights to the use or services of something by payment especially of money : an act of buying (see buy entry 1 sense 1) : purchase.

Affordable pricing — If you're an active investor, even the most expensive plan at $49.95 per month is a steal based on the information that TipRanks is giving you. If you're someone who picks one or two stocks a year, it probably wouldn't be worth it.

Zacks excels in quantitative analysis and modelling, providing proprietary earnings estimate data, valuations models, and quantitative stock ratings. But it does not have the focus on actual expert performance that TipRanks offers.

TipRanks utilizes AI technology to offer predictive insights and a simplified view of analyst ratings and market consensus. Seeking Alpha provides in-depth analysis leveraging a large community of contributors which results in a wide range of opinions and detailed discussions about market trends.

The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from one to ten, based on 8 market key factors. The lowest score is a 1 and the highest is 10.

What stock has the most strong buy ratings? ›

Amazon, Nvidia and Microsoft top the list of stocks scoring rare Strong Buy consensus ratings. Some of the other names might surprise you.

The 3-Day Rule in stock trading refers to the settlement rule that requires the finalization of a transaction within three business days after the trade date. This rule impacts how payments and orders are processed, requiring traders to have funds or credit in their accounts to cover purchases by the settlement date.

countable noun. If something is a good buy, it is of good quality and not very expensive.

Technical traders usually want to identify strong, uptrending stocks for potential buys and weak downtrending stocks for shorts. One way to find them is to use moving averages, which are trend-following indicators that smooth out day-to-day price movements to show a stock's general direction over time.

The common thinking is to wait for evidence of a stock's reversal before making a move, but "buying on weakness" goes against that. Instead, this strategy involves acting proactively by entering a long position or covering a short position while the stock's price is in a downtrend.