What Is an Analyst Rating? Buy, Hold, Sell Explained

An analyst rating is a recommendation from a professional securities analyst indicating whether to Buy, Hold, or Sell a stock, usually accompanied by a 12-month price target.

The Rating Scale

Strong Buy / Buy / Outperform (bullish) → Hold / Neutral → Underperform / Sell (bearish). Terminology varies by firm but maps to the same tiers. About 55–60% of all ratings are Buy — partly due to business relationships between banks and the companies they cover.

What Is Consensus Rating?

Consensus rating is the average of all analyst ratings for a stock. A stock with 15 Buy ratings and 2 Holds has a very bullish consensus. StocksRankings shows analyst consensus combined with RSI, insider buying, and valuation for a fuller picture.

How to Use Analyst Ratings Intelligently

Use consensus as one signal among many — not as a buy/sell decision alone. Watch for changes in ratings (upgrades/downgrades) rather than static levels. Cross-reference with insider buying: if analysts rate Buy AND insiders are buying personally, that's a powerful convergence of signals.

See how analyst consensus combines with short interest in the Squeeze Rankings, or check today's AI stock picks which incorporate analyst consensus alongside quantitative signals.