Wall Street Consensus Watch on Grifols, S.A. (NASDAQ:GRFS) as ABR Hits 13

Grifols, S.A. (NASDAQ:GRFS) currently has an Average Broker Rating of 1.78. The ABR rank within the industry stands at 13. This number is based on the 6 sell-side firms polled by Zacks.  

Each brokerage research report carries with it some form of recommendation. The brokerage firms may use different lingo for their rating systems (like saying Outperform instead of Buy), but they can all be properly sorted into our 5 level classification system that is now the industry standard. Each of the 5 classifications has a value associated with it to help compute the ABR. 

As the name implies the ABR will show you the Average of Brokerage Recommendations on a given stock. The benefit is that you quickly get a snapshot of where Wall Street stands on a stock without having to read a mountain of research reports.

Broker recommendations are made by brokerage firms (for example, JP Morgan) and are not an outright recommendation to buy or sell a share, but instead give an indication of how the broker thinks the company will perform relative to its sector. Their recommendations are issued over a particular period of time. The recommendations provided in the Research Centre are shown on a 75 day rolling basis. Each brokerage firm has its own way of rating that may make it difficult to compare broker recommendations between the brokerage houses.

For example, at one brokerage “buy” may be the strongest recommendation, while at another “buy” could be second to a “strong buy” rating. The second-highest ratings also have a number of different other names: “accumulate”, “outperform”, “moderate buy” or “overweight”.

Analysts on a consensus basis are expecting that the stock will reach $21.5 within the year.

Individual investors might be digging a little deeper into the playbook in order to create a winning plan for the remainder of the calendar year. The diligent investor typically has a portfolio that is diversified and ready to encounter any unforeseen market action. Even after creating the well-planned portfolio with expected returns, nobody can be absolutely sure that those returns will be seen. Setting realistic expectations can help the investor from becoming discouraged if the original plan runs into a bit of a snag. Of course every investor would like to enter the stock market and see sizeable profits right off the bat. This may only be wishful thinking for investors who aren’t ready to put in the time and energy to make sure the overall strategy stays on track and the portfolio stays properly managed.

Grifols, S.A. (NASDAQ:GRFS) closed the last session at $18.01 and sees an average of 782413.75 shares trade hands in each session. The 52-week low of the stock stands at $17.44 while the current level stands at 7.87% of the 52-week High-Low range. Looking further out we can see that the stock has moved -14.85% over the past 12 weeks and -1.91% year to date.

Research analysts are predicting that Grifols, S.A. (NASDAQ:GRFS) will report earnings of $0.28 per share when the firm issues their next quarterly report. This is the consensus earnings per share number according to data from Zack’s Research.

Most recently Grifols, S.A. (NASDAQ:GRFS) posted quarterly earnings of $0.34 which compared to the sell-side estimates of 0.31. The stock’s 12-month trailing earnings per share stands at $1.2. Shares have moved $-6.39 over the past month and more recently, $-3.28 over the past week heading into the earnings announcement. There are 2 analyst projections that were taken into consideration from respected brokerage firms.

4 analysts rate Grifols, S.A. a Buy or Strong Buy, which is 66.67% of all the analyst ratings.

Investors may be trying to figure out how much risk they are able to handle with their current stock holdings. Taking on too much risk can put unnecessary weight on the shoulders of even the sturdiest investors. On the flip side, investors who play it too safe may be shaking their heads and wondering what might have been. Finding that delicate risk balance can turn out to be the difference between sinking and swimming in the equity markets. It is highly important for investors to understand exactly what risks they are taking when buying and selling stocks. Knowing these risks may help avoid disaster down the line. Once the risk is calculated, investors should have an easier go at narrowing in on finding the right stocks to add to the portfolio. 

This article is informational purposes only and should not be considered a recommendation to buy or sell the stock.

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