Jul 27, 2023
 in 
Opportunities

Analyst Recommended Investments: Who Are These Analysts And Can I Trust Them?

H

ere at Nemo, we’re big believers in the power of artificial intelligence and we use AI extensively throughout our business. We have an AI chat available to answer your investment related questions and we even use AI to create interesting and unique images we might want.  

The most advanced use of AI, though, is for stock analysis and selection. AI has the capacity to process thousands of data points, from thousands of stocks, in a matter of seconds. Far quicker, and more accurately, than any human can.  

BUT we don’t believe in a single source of truth, and even though we’re supporters of artificial intelligence being used … well … intelligently, we’re not ready to get rid of that human touch just yet. This is why we value the expert opinions of professional market analysts and combine AI data with their years of market experience to uncover those investment opportunities you don’t want to miss out on!

Who are the Nemo market analysts?  

Nemo uses an independent partner called Refinitiv Ltd to provide market analyst recommendations and information. As one of the world’s largest providers of financial markets data and infrastructure, Refinitiv were an easy choice for us. The company’s drive to ‘connect people to choice and opportunity’ perfectly aligned with the Nemo mission to help people never miss out on investment opportunities.  

On the numbers side, it’s a multi-billion-dollar business, with $6.25 billion in revenue, over 40,000 customers and 400,000 end users across 190 countries, supported by 25,000 global staff.  

In 2021, Refinitiv Ltd joined the London Stock Exchange Group (LSEG), underpinning the business with the strength and stability of a more than 300-year-old organisation, broadening its capacity to positively impact the financial community.  

So, to address the question of trust – can you trust the market analyst recommendations?  

With Refinitiv’s solid reputation in the space and deep market expertise, many trust the insights and recommendations of their leading market analysts.

As always, though, we do need to include a word of caution. It’s important for you to do your own further research before you invest. Recommendations are just that – recommendations. They’re based on general, public information and shouldn’t ever be considered as advice as they don’t take your own personal financial circumstances, challenges or goals into consideration.  

What you need to know about analyst ratings and data

Before we highlight the specific analyst recommendations, let’s look at analyst ratings, as these form the basis for the recommendations and are a good starting point when considering whether to invest in a particular stock.  

The Refinitiv analysts research a company’s current and future position extensively. They’ll read financial statements, listen to earnings calls, or read transcripts of these calls. Analysts may also talk to company managers and customers to gauge sentiment on the company’s performance. From here, an analyst can make an educated decision on how they believe a company will perform in the coming period and assign a trading rating.

Rating Recommended action
Strong buy High confidence – buy the stock
Buy Buy the stock
Hold No compelling reason to buy now, but also no reason to sell if already owned
Sell Sell the stock
Strong sell High confidence – sell the stock
Analyst recommendation for stock trading

Investors should be cautious when interpreting the ratings, and never take them at face value. Many factors can cause the price of a security to go up or down.  

Speaking of price, that brings us nicely to analyst forecasts.  

Analyst Forecasts on Nemo

On Nemo, if you click on a stock’s name, you’ll find more detailed information about the company, including the Analyst Rating (as above) and the Analyst Forecast.

Analyst forecast of 12 month price target

The Analyst Forecast provides an estimated average target price of the stocks for the next 12 months, based on the expected increase, or decrease, in the period.  

What’s really helpful (for those of us who aren’t the quickest with mental maths) is the calculated potential yield on a hypothetical $1,000 investment. For example, if you were to invest $1,000 in this stock at its current price of $2.12, analysts predict a 53.8% increase in the next 12 months, reaching an average target price of $4.59. This could potentially yield a profit of $538.00 on your investment.  

As we’ve said before, these forecasts and predictions are based on data available at the time of analysis and can’t be guaranteed at all. They should be used as guidelines only.  

Now, let’s get to the analyst recommended nemes.  

Analyst recommended investment opportunities on Nemo

Analyst Recommended

This neme rounds up all stocks of the most established companies where analyst sentiment is Strong Buy. This indicates a high level of confidence in the investment's potential for substantial growth. The analysts believe have strong fundamentals, positive market outlooks, and the ability to outperform their peers.

Check the Analyst Recommended neme.  

What Analysts Say

While the Analyst Recommend neme outlines Strong Buy opportunities, the What Analysts Say neme is more general and curates stocks with all trading ratings.  

By considering analyst ratings such as Strong Buy, Buy, Hold, Sell, and Strong Sell, investors can leverage the expertise of analysts to evaluate potential investment opportunities and align their strategies with professional recommendations.

Tip: Filter by rating type to see all stocks listed for that particular rating.  

See the What Analysts Say neme.  

As the analyst-led nemes and forecasts are based on data and information that’s often updated or changing, you may want to opt-in to alerts for instant notifications from Nemo. Just another way we’re helping you to beat FOMO and never miss out on investment opportunities again.

Not yet on Nemo? Create an account today!