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Zacks.com featured highlights include: Camping World, Antero Resources, Callon Petroleum, Cincinnati Bell and Beacon Roofing Supply
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For Immediate Release
Chicago, IL – January 28, 2021 – Stocks in this week’s article are Camping World Holdings, Inc. (CWH - Free Report) , Antero Resources Corporation (AR - Free Report) , Callon Petroleum Company , Cincinnati Bell Inc. and Beacon Roofing Supply, Inc. (BECN - Free Report) .
Recent Analyst Upgrades Add Sheen to These 5 Stocks
The gradual re-opening of economies has resulted in an uptick in activities. Evidently, China’s GDP grew 6.5% in the fourth quarter of 2020, per the National Bureau of Statistics data. The availability of vaccines to combat the coronavirus and the subsequent commencement of immunization programs across the globe added to this optimism.
Despite this buoyancy, the recent surge in COVID-19 cases in the United States and the renewed lockdowns in the UK, Ireland and some other countries in the EU following the detection of a new strain in the United Kingdom that spiked the infection raise a concern and might dampen the recent recovery. This is likely to increase the uncertainty.
Not withstanding this uncertain scenario, investors would like to rake in profits from their portfolio of stocks. However, even in the best of times, it is not easy to individually design a winning basket of stocks as a plethora floods the market at any given point of time. The coronavirus-induced volatile environment makes the task even more herculean.
What's the Way Forward?
Against this backdrop, it is in the best interest of investors to seek guidance from “experts in the field”. The concerned experts are brokers. The opinion of brokers is a valuable guide for investors while taking a call (buy, sell or hold) on a particular stock. Broker ratings are backed by sound logic. They have deeper insight into the happenings of a particular company as they directly communicate with management.
They do extensive research on the company’s publicly available financial statements apart from attending conference calls. In a bid to enrich their understanding of a particular stock, they sometimes interact with customers to find out their likes/dislikes about the products and services offered by the company.
Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide an unbiased opinion to investors after a thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
Earnings Estimate Revisions: A Useful Guide
As indicated above, brokers follow stocks under their coverage minutely. They revise their earnings estimates on a stock after carefully examining the pros and cons of an event for the concerned company. All the decisions by brokers are supported by solid reason or justification and thus estimate revisions serve as a key determinant in ascertaining a stock price
For instance, an earnings outperformance by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster bottom-line results often lead to stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy. To take care of the earnings performance, we designed a screen based on improving analyst recommendation and upward estimate revisions of the past four weeks.
Revenue Performance Not to be Ignored
While we talked about the bottom line in detail, the revenue performance should not be overlooked. Actually, according to many market watchers, a revenue beat is more credible for a company than a mere earnings outperformance, especially at a time of revenue weakness due to macroeconomic headwinds like a strong dollar or tepid demand for travel (which will hurt travel-focused companies).
To address the top-line woes, we included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include: Camping World, Antero Resources, Callon Petroleum, Cincinnati Bell and Beacon Roofing Supply
For Immediate Release
Chicago, IL – January 28, 2021 – Stocks in this week’s article are Camping World Holdings, Inc. (CWH - Free Report) , Antero Resources Corporation (AR - Free Report) , Callon Petroleum Company , Cincinnati Bell Inc. and Beacon Roofing Supply, Inc. (BECN - Free Report) .
Recent Analyst Upgrades Add Sheen to These 5 Stocks
The gradual re-opening of economies has resulted in an uptick in activities. Evidently, China’s GDP grew 6.5% in the fourth quarter of 2020, per the National Bureau of Statistics data. The availability of vaccines to combat the coronavirus and the subsequent commencement of immunization programs across the globe added to this optimism.
Despite this buoyancy, the recent surge in COVID-19 cases in the United States and the renewed lockdowns in the UK, Ireland and some other countries in the EU following the detection of a new strain in the United Kingdom that spiked the infection raise a concern and might dampen the recent recovery. This is likely to increase the uncertainty.
Not withstanding this uncertain scenario, investors would like to rake in profits from their portfolio of stocks. However, even in the best of times, it is not easy to individually design a winning basket of stocks as a plethora floods the market at any given point of time. The coronavirus-induced volatile environment makes the task even more herculean.
What's the Way Forward?
Against this backdrop, it is in the best interest of investors to seek guidance from “experts in the field”. The concerned experts are brokers. The opinion of brokers is a valuable guide for investors while taking a call (buy, sell or hold) on a particular stock. Broker ratings are backed by sound logic. They have deeper insight into the happenings of a particular company as they directly communicate with management.
They do extensive research on the company’s publicly available financial statements apart from attending conference calls. In a bid to enrich their understanding of a particular stock, they sometimes interact with customers to find out their likes/dislikes about the products and services offered by the company.
Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide an unbiased opinion to investors after a thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
Earnings Estimate Revisions: A Useful Guide
As indicated above, brokers follow stocks under their coverage minutely. They revise their earnings estimates on a stock after carefully examining the pros and cons of an event for the concerned company. All the decisions by brokers are supported by solid reason or justification and thus estimate revisions serve as a key determinant in ascertaining a stock price
For instance, an earnings outperformance by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster bottom-line results often lead to stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy. To take care of the earnings performance, we designed a screen based on improving analyst recommendation and upward estimate revisions of the past four weeks.
Revenue Performance Not to be Ignored
While we talked about the bottom line in detail, the revenue performance should not be overlooked. Actually, according to many market watchers, a revenue beat is more credible for a company than a mere earnings outperformance, especially at a time of revenue weakness due to macroeconomic headwinds like a strong dollar or tepid demand for travel (which will hurt travel-focused companies).
To address the top-line woes, we included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1252629/recent-analyst-upgrade-adds-sheen-to-these-5-stocks?art_rec=quote-stock_overview-zacks_news-ID01-txt-1252629
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: www.Zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.