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Analyst rating

As explained in Investing for Programmers

An investment rating is an assessment assigned by an analyst or evaluation service indicating the perceived attractiveness or risk of a company or financial instrument.

An analyst rating is a buy, hold, or sell assessment indicating how professional analysts or an evaluation service view a company’s investment potential and risk. Ratings are opinions, not predictions, and may disagree or fail to anticipate market events. section 2.5 section 2.6

Common rating measures separate different sources of judgment:

  • SA Analyst Rating aggregates ratings from platform users. section 2.5.1
  • Wall Street Rating aggregates recommendations from professional analysts. section 2.5.1
  • Quant Rating is calculated by a platform algorithm. section 2.5.1
  • Rating changes can reveal shifts in market sentiment, while a single favorable score should not replace independent due diligence. section 2.5.2 section 2.6
Table 2.13 Company ratings based on the Seeking Alpha platform
Company
SA analyst rating
Wall Street rating
Quant rating
NVIDIA (NVDA)
3.83
4.56
3.38
Pfizer (PFE)
3.18
3.56
3.40
Aeva Technologies (AEVA)
2.50
4.40
4.99
Innoviz (INVZ)
—
4.25
3.35
Ouster (OUST)
3.33
5.00
4.50
Luminar Technologies (LAZR)
3.25
2.75
2.63
Sumitomo Mitsui Financial Group (SMR)
2.60
4.00
3.47
For the latest numbers, go to https://seekingalpha.com/.

Compare crowdsourced, Wall Street, and quantitative ratings for companies including NVIDIA, Pfizer, and several speculative technology firms. section 2.5.1

Reading a rating trend

NVIDIA’s rating history shows strong-buy and buy recommendations alongside a gradual decline in confidence over time. The overall rating remained excellent, but the change itself supplied a reason to investigate rather than an automatic buy signal. section 2.5.1

How Investing for Programmers covers it

How deep it goes
Defines rating categories and compares aggregated scores, but defers programmatic collection and does not establish reliable predictive validity.
Examples
Demonstrates platform rating tables, NVIDIA recommendation histories, and distinctions between crowdsourced, professional, and quantitative scores.
What it assumes
Assumes basic investment-analysis familiarity while grounding ratings in buy, hold, sell recommendations and external scorecards.
What you can do after
Evaluate/understand ratings by comparing their sources, monitoring changes, and treating recommendations as uncertain evidence rather than guarantees.
How it connects
Connects analyst ratings with target prices, market sentiment, financial analysis, due diligence, and investment risk.

Related concepts

This explainer was generated by Manning's knowledge graph from the text of Investing for Programmers. The section links point to the parts of the book it draws on.