Company analysts usually understand the stocks they cover better than just about anyone else. For that reason, it can be useful to know whether they think investors should 'buy', 'hold' or 'sell' them. These kinds of clues can give you a steer on what the experts think the future holds...
Take St James's Place (LON:STJ) as an example. Shares in the company have risen by 1.23% over the past month and it’s currently trading at 1,231p. But what are the trading recommendations of the analysts that cover it?
Based on the broker 'consensus', there could be reasons to believe that the positive recent trend will continue. In terms of trading recommendations, St James's Place currently has:
3 Buy recommendations
6 Hold recommendations
0 Sell recommendations
This suggests that analysts are generally upbeat about the outlook.
While analyst forecasts can be a useful guide to what City 'experts' think about a stock's near term future, they can be unreliable. To get a better idea about the strengths and weaknesses of St James's Place it's worth doing some investigation yourself. Indeed, we've identified some areas of concern with St James's Place that you can find out about here.