Published on 8 Apr 2024 on Zacks via Yahoo Finance

Is It Worth Investing in Allegro MicroSystems (ALGM) Based on Wall Street's Bullish Views?

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Allegro MicroSystems, Inc. (ALGM) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Allegro MicroSystems currently has an average brokerage recommendation (ABR) of 1.14, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by seven brokerage firms. An ABR of 1.14 approximates between Strong Buy and Buy.