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

    What Is The Impact Of Research On Stock ...

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

    Why There Are Few Sell Ratings On Wall ...

  3. What You Need To Know About Financial ...
    Insurance

    What You Need To Know About Financial ...

  4. How Nasdaq Continues To Innovate
    Stock Analysis

    How Nasdaq Continues To Innovate

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center