Posted in Finance, Accounting and Economics Terms, Total Reads: 387
Definition: Strong Buy
It is the type of recommendation for a stock given by analysts. These are the stocks that are expected to trade drastically higher over the average market return. It is the best possible rating that an analyst can give to any company.
They are of the opinion that the stock is set to rise due to some positive event such as the launch of a new product and the company will experience positive financial performance and favorable market conditions.
As with any other type of analyst rating, this rating will be relevant only until some other event occurs, the result of this is that analyst changes his or her view of the company.
The recommendations most popular are: Strong buy, Buy, Accumulate, Neutral, Hold and Sell. Through the analysts seldom gives the sell ratings.
Analysts who give ratings are many times associated with the companies like underwriting or financing and so many times they give the Strong buy rating.