Analysts often provide buy/sell/hold recommendations for companies that they cover. Investors have the ability to follow these sell-side ratings in order to assist with stock analysis. Wall Street analyst ratings may have various interpretations. According to analysts taken into consideration by Zacks Research, the current average broker recommendation on shares of Regal Beloit Corporation (NYSE:RBC) is currently 2.43. This rating lands on a scale between 1 and 5. Following this scale, a rating of 1 would indicate a Strong Buy, and a rating of 5 would indicate a Strong Sell recommendation. Out of all the analysts providing ratings, 2 have rated the stock a Strong Buy or Buy, according to Zacks Research.
The stock market can be influenced by many different factors such as news, politics, earnings reports, or even company rumors. Often times the market may not react as expected to certain events. This may cause the investor to become frustrated at times. Sometimes certain market moves may seem to go against prevailing logic. This is why it can be extremely hard to predict near-term moves with any certainty. Taking a big picture look at the financial markets may help offer a clearer picture of how all the different aspects contribute to market movements. Figuring out why a certain move happened may help shed some light when the same scenario arises again in the future.
Taking a quick look at the current quarter EPS consensus estimate for Regal Beloit Corporation (NYSE:RBC), we can see that the most recent level is sitting at 1.3. This EPS projection uses 4 Sell-Side analysts polled by Zacks Research. For the previous reported quarter, the company posted a quarterly EPS of 1.52. Covering analysts have the tough job of following companies and offering future estimates. These estimates are often closely followed on the Street, and earnings beats or misses revolve around these projections. Sometimes these predictions are extremely close to the actual reported number, and other times they may be way off. When a company posts actual earnings numbers, the surprise factor can lead to sudden stock price fluctuations. If a company meets and beats estimates and posts a positive earnings surprise, the stock may see a near-term bump. On the other end, a negative surprise may send the stock in the opposite direction. Many investors will choose to trade with caution around earnings releases and wait to make a move until after the major activity has subsided.
Zooming in on recent stock price action for Regal Beloit Corporation (NYSE:RBC), we note that shares are trading near the 69.5 level. Investors will often follow stock price levels in relation to the 52-week high and low levels. The 52-week high is presently 87.26, and the 52-week low is sitting at 66.93. When a stock price is getting close to either the 52-week high or 52-week low, investors may track activity to watch for a move past the established mark. Over the last 12 weeks, shares have seen a change of -13.51%. Heading further back to the start of the year, we note that shares have seen a change of -0.79%. Focusing in closer to the last 4 weeks, shares have seen a change of -5.95%. Over the past five trading days, the stock has changed -4.6%.
As we move deeper into earnings season, investors and analysts will be closely watching which companies look they are getting things right. Many investors will be following which companies beat or miss the estimates by a wide margin. Large surprise factors can cause a stock to jump or fall shortly after the actual numbers are released. Investors may also be tracking which industry leaders come out on top during the latest round of earnings reports. Tracking the sectors that are poised for growth may help give the investor a good idea for the types of stocks they may want to add to the portfolio as we get closer to the end of the current calendar year.