Would you buy a stock based on 45+ analysts' prediction?
Let's use Facebook as an example. I'm not saying buy Facebook, but I just want to go through the thought process of buying something based on analysts' prediction.
4 Traders Website has 42 analysts saying Facebook is a strong buy with only 1 analysts saying to sell. So far sounds good.
42 analysts has a mean prediction of Facebook going to $208. Some of those analysts has a high prediction of it going to $240 by the end of the year.
Right now it's priced $187.
So doesn't it sound like a good buy?
Let's say Facebook drops to $160 while the mean prediction is still $208. So isn't buying on the lower side of the Mean prediction (of 42 Analysts), a good buy?
Please grill me if you want, I'm just want to learn. Thanks!
NOTE: This message was originally posted on 2018-01-07 08:36:45 by the andysandp.
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