15 Best Strong Buy Stocks To Invest In

Ramish Cheema
10 min read

In This Article:

In this piece, we will take a look at the 15 best strong buy stocks to invest in. If you want to skip our overview of analyst ratings and the finance industry, then you can take a look at the 5 Best Strong Buy Stocks To Invest In.

The financial services industry is one of the biggest in the world, and just like oil, its smooth functioning is indispensable for global economic well being. A financial firm can be of several types and cater to the money needs and requirements of a wide variety of customers. The firms can range from small, regional, and mega banks, to credit services providers, savings and loan associations, multi billion dollar asset management funds, sharply managed hedge funds, and of course, investment management companies such as Warren Buffett's Berkshire Hathaway.

Broadly speaking, while the finance industry is involved in the business of managing money, it's investment banks and analysts who are responsible for shaping investor attention. They do this by preparing stock coverage reports and assigning ratings and price targets to publicly traded companies. The share price targets, ratings, earnings, revenue estimates, and notes are the primary ways through which analysts evaluate an equity. Their opinions are also some of the most reliable indicators of a share price's movements as every earnings cycle investor reacts to a publicly traded stock's revenue and EPS meeting or missing analyst estimates, Similarly, during any business day, a share price upgrade or downgrade by mega investment banks and behemoths such as JPMorgan Chase & Co. (NYSE:JPM), The Goldman Sachs Group, Inc. (NYSE:GS), and Morgan Stanley (NYSE:MS).

Additionally, just because these banks or others evaluate stocks doesn't mean that they don't get evaluated themselves. As long as they're publicly traded and are of sufficient size to justify expending resources on, the banks that analysts work for are evaluated by their peers as well with the only limitation being that analysts from, say, JPMorgan cannot write investment notes about their own bank.

Since dozens of analysts cover big ticket names such as Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT), the most common way in which share price ratings or price targets are covered in the press is by averaging them. For instance, as part of our look at ten stocks with rising share price targets, Insider Monkey analyzed data for firms such as Costco Wholesale Corporation (NASDAQ:COST), Uber Technologies, Inc. (NYSE:UBER), and AbbVie Inc. (NYSE:ABBV), Insider Monkey used share price target averages ranging from 31 analysts for Costco, to 44 analysts covering Uber's shares. This is unsurprising as well, since analysts typically work for financial services firms that are classified as Sell Side.

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