Investors should never put too much weight on specific price targets set by Wall Street. They are little more than glorified guesses based on near-term trends, and stocks are inherently unpredictable over short periods of time. Warren Buffett said it best: "Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future."

That said, price targets can still help investors identify stocks worth researching, especially when a large number of analysts come to similar conclusions. For instance, 20 of the 28 analysts that follow Intuit (NASDAQ: INTU) have a buy rating on the stock, and the average price target is $474 per share, which implies roughly 14% upside from its current price. Similarly, 17 of the 21 analysts that follow MercadoLibre (NASDAQ: MELI) have a buy rating on the stock, and the average price target is $1,291 per share, which implies 13% upside from its current price. 

In both cases, Wall Street is overwhelmingly bullish. Is it time to buy these stocks?

Continue reading

Source Fool.com