Usually, the research ratings of stock institutions are divided into buy, overweight, recommendation, neutral, wait-and-see, underweight and sell ratings. If the institutional research gives a buy rating, it means that the stock is favored by the research institutions. And if the institutional research gives a sell rating, then it means that the stock is not favored by the research institutions.
However, because the analysis and investigation of institutions are analyzed by analysts who collect basic research data through various market channels. On the basis of these original data, the analyst processes the data, establishes an analysis model, puts forward various assumptions, and finally draws an analysis conclusion through the analysis model. However, if there is something wrong with the original research data in the market, the reference degree of the research rating information of this institution will be greatly reduced. Therefore, the stocks surveyed by institutions are not necessarily good or bad, mainly based on the rating data after the institutional investigation.
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Every analyst in the market has different market experience, different views on stocks, and often different standards for mastering securities ratings. Therefore, there will be great differences in institutional research ratings in the market. Moreover, the stock market is changing rapidly, and these research institutions have only studied, analyzed and investigated for some time. Therefore, the continuity and integrity of agency rating information are weak. There will also be some institutions in the market to help institutional funds ship through such research and rating methods, and investors need to be cautious when using them.
It is absolutely good for a large number of institutions to study stocks. Although the investigation of stocks by a large number of institutions does not necessarily lead to a rise in stock prices, it at least shows that stocks are concerned by a large number of institutions. This is also the reason why a commodity is better seen by many people than by no one. Generally, a good company will have a lot of institutional research.
Generally speaking, there is no completely effective positive or negative impact on stocks. Only when the listed companies under investigation have good fundamentals can the market's attention be improved. If the company's fundamentals are weak and the stock price is at a high level, investors need to pay attention to the risks of institutional shipment. However, there is no perfect investment method and interpretation method in the investment market, which needs to be combined with other market indicators, market environment and individual stocks for reference.