Analysts' sentiment is important in determining the right time to buy stock. However, the trend in sentiment and coverage is more important than the consensus rating. A Moderate Buy or Buy rating doesn't mean as much if recent revisions include downgrades, price target revisions, and lapsed coverage. Those are headwinds for stock prices that can signal a top and a high potential for bearish reversals. A stock with a consensus rating of sell with recent upgrades and price target increases would be a better choice; those are tailwinds that can help a market bottom and enter a bullish reversal.
Increasing analyst coverage is another tailwind for stock prices because growing coverage equates to growing inflows of investor money. The stocks in this article are attracting new coverage, and upgrades and revisions support their markets. Because Chewy (NYSE: CHWY) and Gitlab (NASDAQ: GTLB) are leaders in their respective fields, the odds are high that their stock prices will follow the analysts' lead and move higher.
TD Cowen Takes a Bite of Chewy, Inc. Citing Long-Term Growth Potential
Chewy analysts began increasing their price targets over the summer after results ...
