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Zacks.com featured highlights Washington Federal, HarborOne Bancorp, Ladder Capital, MGIC Investment and KKR Real Estate Finance
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For Immediate Release
Chicago, IL – November 11, 2022 – Stocks in this week’s article are Washington Federal, Inc. (WAFD - Free Report) , HarborOne Bancorp, Inc. (HONE - Free Report) , Ladder Capital Corp (LADR - Free Report) , MGIC Investment Corp. (MTG - Free Report) and KKR Real Estate Finance Trust Inc. (KREF - Free Report) .
5 Top Stocks to Buy on New Analyst Coverages
As analysts are the key information intermediaries in capital markets, initiation of coverage by them offers critical information on a stock that is of great value to investors.
Washington Federal, Inc., HarborOne Bancorp, Inc., Ladder Capital Corp, MGIC Investment Corp. and KKR Real Estate Finance Trust Inc. are a few stocks that have witnessed new analyst coverage lately. These, therefore, are expected to attract investor attention.
Coverage initiation by analyst(s) on a stock portrays higher investor inclination. Investors, on their part, often assume there is something special in a stock to attract analysts’ interest. In other words, they believe that the company coming under coverage has value that can’t be ignored.
Obviously, stocks are not randomly chosen to cover. New coverage usually reflects a reassuring future envisioned by the analyst(s). At times, increased investor focus on a stock motivates analysts to take a closer look at it. After all, who doesn’t love to produce something that is already in demand? Hence, we often find that analysts’ ratings on newly-added stocks are more favorable than ratings on continuously covered stocks.
It is worth mentioning here that the average change in broker recommendation is always preferred over a single recommendation change.
New Analyst Coverage & Impact on Price Movement
The price movement of a stock is the function of the recommendations on it from new analysts. Typically, stocks see an upward price movement on new analyst coverage compared to what was witnessed with a rating upgrade under an existing coverage. Positive recommendations — Buy and Strong Buy — generally lead to a significantly positive price reaction than Hold recommendations. On the contrary, analysts hardly initiate coverage with a Strong Sell or Sell recommendation.
Meanwhile, investors start paying more attention to the stock (that has very few or no existing coverage) on which an analyst provides a new recommendation. Also, any new information attracts portfolio managers to build a position in the stock.
Below, we have selected five stocks that have seen increased analyst coverage over the last few weeks.
Here are five out of the 13 stocks that passed the screen:
Washington Federal: Based in Seattle, WA, Washington Federal operates as the bank holding company for Washington Federal Bank, National Association that provides lending, depository, insurance, and other banking services in the United States.
WAFD currently carries a Zacks Rank #1 (Strong Buy). The stock has increased 11.9% year to date, outperforming the industry’s 33.2% decline. Earnings estimates for 2023 have increased to $4.32 per share from $3.58 per share over the past 30 days, depicting analysts’ optimism about the company’s prospects. The estimated figure calls for a 27.4% improvement from the year-ago period.
HarborOne Bancorp: Brockton, MA-based HarborOne Bancorp provides financial services and operates as the holding company for HarborOne Bank.
HONE stock currently carries a Zacks Rank #2. The stock has lost 6% over the past year against the industry’s 15.9% decline. Earnings estimates for 2023 have increased to $1.05 from $1.01 per share over the past 30 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
MGIC Investment: This Milwaukee, WI-based company provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services.
MTG currently carries a Zacks Rank #2. The stock has declined 8.1% over the past year, underperforming the industry’s 3.1% decline. Nonetheless, earnings estimates for 2023 have increased to $2.28 per share from $2.27 over the past seven days, depicting analysts’ optimism about the company’s prospects.
KKR Real Estate Finance Trust: Headquartered in New York, NY, this is a mortgage real estate investment trust. It focuses mainly on originating and acquiring senior loans secured by commercial real estate assets.
KREF currently carries a Zacks Rank #2. The stock has declined 20% year to date, outperforming the industry’s 35.7% decline. Earnings estimates for 2023 have increased to $1.97 per share from $1.94 over the past 30 days.
Ladder Capital: Ladder Capital is a New York, NY-based commercial real estate finance company.
LADR stock currently carries a Zacks Rank #2. The stock has lost 10.4% year to date versus the industry’s 35.7% decline. Earnings estimates for 2023 have increased to $1.18 from $1.08 per share over the past 30 days. The estimated figure calls for 4.4% growth from the year-ago period.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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 Washington Federal, HarborOne Bancorp, Ladder Capital, MGIC Investment and KKR Real Estate Finance
For Immediate Release
Chicago, IL – November 11, 2022 – Stocks in this week’s article are Washington Federal, Inc. (WAFD - Free Report) , HarborOne Bancorp, Inc. (HONE - Free Report) , Ladder Capital Corp (LADR - Free Report) , MGIC Investment Corp. (MTG - Free Report) and KKR Real Estate Finance Trust Inc. (KREF - Free Report) .
5 Top Stocks to Buy on New Analyst Coverages
As analysts are the key information intermediaries in capital markets, initiation of coverage by them offers critical information on a stock that is of great value to investors.
Washington Federal, Inc., HarborOne Bancorp, Inc., Ladder Capital Corp, MGIC Investment Corp. and KKR Real Estate Finance Trust Inc. are a few stocks that have witnessed new analyst coverage lately. These, therefore, are expected to attract investor attention.
Coverage initiation by analyst(s) on a stock portrays higher investor inclination. Investors, on their part, often assume there is something special in a stock to attract analysts’ interest. In other words, they believe that the company coming under coverage has value that can’t be ignored.
Obviously, stocks are not randomly chosen to cover. New coverage usually reflects a reassuring future envisioned by the analyst(s). At times, increased investor focus on a stock motivates analysts to take a closer look at it. After all, who doesn’t love to produce something that is already in demand? Hence, we often find that analysts’ ratings on newly-added stocks are more favorable than ratings on continuously covered stocks.
It is worth mentioning here that the average change in broker recommendation is always preferred over a single recommendation change.
New Analyst Coverage & Impact on Price Movement
The price movement of a stock is the function of the recommendations on it from new analysts. Typically, stocks see an upward price movement on new analyst coverage compared to what was witnessed with a rating upgrade under an existing coverage. Positive recommendations — Buy and Strong Buy — generally lead to a significantly positive price reaction than Hold recommendations. On the contrary, analysts hardly initiate coverage with a Strong Sell or Sell recommendation.
Meanwhile, investors start paying more attention to the stock (that has very few or no existing coverage) on which an analyst provides a new recommendation. Also, any new information attracts portfolio managers to build a position in the stock.
Below, we have selected five stocks that have seen increased analyst coverage over the last few weeks.
Here are five out of the 13 stocks that passed the screen:
Washington Federal: Based in Seattle, WA, Washington Federal operates as the bank holding company for Washington Federal Bank, National Association that provides lending, depository, insurance, and other banking services in the United States.
WAFD currently carries a Zacks Rank #1 (Strong Buy). The stock has increased 11.9% year to date, outperforming the industry’s 33.2% decline. Earnings estimates for 2023 have increased to $4.32 per share from $3.58 per share over the past 30 days, depicting analysts’ optimism about the company’s prospects. The estimated figure calls for a 27.4% improvement from the year-ago period.
HarborOne Bancorp: Brockton, MA-based HarborOne Bancorp provides financial services and operates as the holding company for HarborOne Bank.
HONE stock currently carries a Zacks Rank #2. The stock has lost 6% over the past year against the industry’s 15.9% decline. Earnings estimates for 2023 have increased to $1.05 from $1.01 per share over the past 30 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
MGIC Investment: This Milwaukee, WI-based company provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services.
MTG currently carries a Zacks Rank #2. The stock has declined 8.1% over the past year, underperforming the industry’s 3.1% decline. Nonetheless, earnings estimates for 2023 have increased to $2.28 per share from $2.27 over the past seven days, depicting analysts’ optimism about the company’s prospects.
KKR Real Estate Finance Trust: Headquartered in New York, NY, this is a mortgage real estate investment trust. It focuses mainly on originating and acquiring senior loans secured by commercial real estate assets.
KREF currently carries a Zacks Rank #2. The stock has declined 20% year to date, outperforming the industry’s 35.7% decline. Earnings estimates for 2023 have increased to $1.97 per share from $1.94 over the past 30 days.
Ladder Capital: Ladder Capital is a New York, NY-based commercial real estate finance company.
LADR stock currently carries a Zacks Rank #2. The stock has lost 10.4% year to date versus the industry’s 35.7% decline. Earnings estimates for 2023 have increased to $1.18 from $1.08 per share over the past 30 days. The estimated figure calls for 4.4% growth from the year-ago period.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2016671/5-top-stocks-to-buy-on-new-analyst-coverages
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: https://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.