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Evaluating
stocks

Broker Ratings
Number of analysts with buy recommendations

It is the number of analysts suggesting to buy a particular stock out of the total
analysts who have researched the stock.

It gives a general idea on a stock’s performance as well as future value. We have


other similar filters like: % of analysts giving buy and sell recommendations but
this absolute value additionally gives an idea of how many analysts are covering
the stock

Percentage Buy Recommendations

This data item is calculated as sum of strong buy / buy recommendations divided
by the total number of recommendations for the stock. Stock brokers regularly
put out their recommendations about particular stocks. These recommendations
could be either strong buy, buy, hold, sell or strong sell. Each broker covering the
stock will usually have one of these recommendations for that stock
Suppose 10 brokers are covering Maruti Suzuki, 3 of them have strong buy
recommendation, 2 have buy recommendation, 1 has hold and the rest have sell
recommendation. Percentage buy recommendation is calculated as (3+2) / 10 =
50%

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Number above 50% is considered to be good because more number of brokersstocks/te
indicators
have strong buy / buy recommendation for the stock compared to hold or sell.
Closer the number is to 100% the better, indicating higher confidence in the
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Percentage Upside

This data item is calculated as percentage difference between target price of the
stock and the close price. Stock brokers project the expected price level of the
stock over the near term. Average of all these projections for a particular stock is
called target price of the stock. Suppose 3 brokers are covering stock XYZ and
have projected the stock price to be Rs.112, Rs.128 and Rs.97 over the near term.
Target price is calculated as (112+128+97) / 3 = Rs.112.33

Percentage difference between the target price and the current stock price
shows the potential upside/downside in the stock. Suppose current market price
of stock XYZ is Rs.88, we have calculated target price as Rs.112.33. Percentage
upside is calculated as (112.33 / 88) – 1 = 27.65%. A positive number indicates
potential upside whereas negative number indicates downside

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Technical Indicators Ownership
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