Someone on Pencils board asked what I thought about Zacks giving AFOP a 5 rating. Here’s what I answered (somewhat enlarged):
A 5 rating from just means analyst estimates were even higher and have now come down to the 85% y/y that they forecast. Zacks just rates on the basis of direction of movement of analyst estimates.
Just for interest I looked at the ratings that SCHWAB gives my stocks. Of my 24 stocks that they had ratings for (most of which are MF RB or MF SA picks), they rated:
4 — C
7 — F
None got an A or a B. Even WAB, which is the only stock on any US exchange to be up in each of the 14 years of this century, and is at a very respectable PE, and pays a dividend, got a D. For the life of me I can’t imagine what they are looking at. I guess you have to be a huge company with no prospect of growth to get an A or a B. (The opposite of Zacks, in a way).