Strong Buy

AAA

DEFINITION of 'Strong Buy'

A type of stock purchasing recommendation given by analysts for a stock that is expected to dramatically outperform the average market return and/or the return of comparable stocks in the same sector or industry. It is an analyst's emphatic endorsement of a stock.

INVESTOPEDIA EXPLAINS 'Strong Buy'

'Strong buy' is the strongest recommendation that an analyst can give to purchase a stock. As with any type of analyst rating, the rating is only relevant until a material event occurs that results in the analyst changing his or her outlook regarding the company.

A 'strong buy' means the analyst believes the stock's underlying company is or will soon be experiencing positive financial performance and/or favorable market conditions.

RELATED TERMS
  1. Stock Market

    The market in which shares of publicly held companies are issued ...
  2. Analyst

    A financial professional who has expertise in evaluating investments ...
  3. Underperform

    An analyst recommendation that means a stock is expected to do ...
  4. Upgrade

    A positive change in the rating of a security. An upgrade is ...
  5. Outperform

    An analyst recommendation meaning a stock is expected to do slightly ...
  6. Buy

    1. A recommendation to purchase a specific security. A buy rating ...
Related Articles
  1. What You Need To Know About Financial ...
    Insurance

    What You Need To Know About Financial ...

  2. What Is The Impact Of Research On Stock ...
    Investing Basics

    What Is The Impact Of Research On Stock ...

  3. Why There Are Few Sell Ratings On Wall ...
    Investing Basics

    Why There Are Few Sell Ratings On Wall ...

  4. Alibaba's Top Competitors
    Investing News

    Alibaba's Top Competitors

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center