One published method: TipRanks
TipRanks describes a three-month consensus using Buy=1, Hold=3, and Sell=5. Its Moderate Buy interval is above 1.5 through 2.5. Strong categories require at least three ratings; otherwise they are reduced to the corresponding Moderate label. This is that provider's method, not a Wall Street standard.
| Hypothetical included ratings | Arithmetic | Average |
|---|---|---|
| 3 Buy, 2 Hold | (3×1 + 2×3) / 5 | 1.8 |
| 2 Buy, 3 Hold | (2×1 + 3×3) / 5 | 2.2 |
| 3 Buy, 1 Hold, 1 Sell | (3×1 + 1×3 + 1×5) / 5 | 2.2 |