For Immediate Release
Chicago, IL –August 01, 2017 - Stocks in this week’s article includeExpress Scripts Holding Company (NASDAQ:ESRX – Free Report), Abercrombie & Fitch Co. (NYSE:ANF – Free Report),Commercial Vehicle Group, Inc. (NASDAQ:CVGI – Free Report), DXP Enterprises, Inc. (NASDAQ:DXPE – Free Report) and Plains GP Holdings, L.P. (NYSE:PAGP – Free Report).
5 Stocks Made Attractive by Recent Broker Rating Upgrades
The second-quarter reporting cycle is in full swing with multiple companies coming up with their quarterly financial numbers. The picture that has emerged so far is quite encouraging and the season remains on track to end on a strong note. A high proportion of companies have reported better-than-expected earnings per share in the current reporting cycle.
Generally, an earnings beat leads to an appreciation in stock price. Given this highly bullish backdrop, investors would like to add outperformers to their respective portfolios for healthy returns.
However, the task is far from easy with a plethora of companies present in the market. Moreover, the complexities associated with the stock market make it even more difficult for individual investors to select outperformers in the absence of proper guidance.
Be Guided by Broker Advice
The requisite guidance to design a winning portfolio comes from brokers. Brokers, not only scrutinize the publicly available financial documents, but also attend company conference calls and other presentations.
Since brokers arrive at their recommendation (buy, sell or hold) on a stock after thoroughly analyzing the nitty-gritty associated with the company, it is natural for investors to be guided by the direction of estimate revisions while deciding their course of action on a particular stock. Estimate revisions serve as an important pointer regarding the price of a stock. In fact, a rating upgrade generally leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade.
Estimates can move north for a number of reasons – favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario.
Making the Most of Broker Opinions
We have designed a screen to shortlist stocks based on improving analyst recommendation and upward revisions in earnings estimates over the last four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy foolproof.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).
% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).
We have also added the following screening parameters to ensure that the strategy is a winning one:
Price-to-Sales = Bot%10 (The lower the ratio the better, companies meeting this criteria are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio).
Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).
Com/ADR/Canadian= Com (This takes out the ADR and Canadian stocks).
Here are five of the 10 stocks that made it through the screen:
St. Louis, MO-based Express Scripts Holding Company (NASDAQ:ESRX – Free Report) is the largest pharmacy benefit manager (PBM) in North America. It has an impressive record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the last four quarters by an average of 0.62%. It carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abercrombie & Fitch Co. (NYSE:ANF – Free Report) operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of over 700 stores in the United States and multiple stores across Canada, Europe, Asia, Australia and the Middle East. This Zacks Rank #3 stock has an impressive expected earnings per share growth rate of 14% for 3–5 years.
New Albany, OH-basedCommercial Vehicle Group, Inc. (NASDAQ:CVGI – Free Report) supplies interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market. Last quarter, this Zacks Rank #1 company had posted earnings of 8 cents per share, while our expectation was of a breakeven.
DXP Enterprises, Inc. (NASDAQ:DXPE – Free Report) supplies maintenance, repair and operating products, equipment and services to industrial customers. Over the last 60 days, the Zacks Consensus Estimate for this Zacks Rank #2 (Buy) company rose 2.5% to 81 cents for 2017 and 3.2% to $1.28 for 2018.
Plains GP Holdings, L.P. (NYSE:PAGP – Free Report), through its subsidiaries, is involved primarily in the transportation, storage and marketing of crude oil and refined products. The Zacks Consensus Estimate for this Zacks Rank #3 stock has increased 9.1% to 24 cents per share over the last 30 days.
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.
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. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time!Click here for your free subscription to Profit from the Pros.
Get the full Report on PAGP - FREE
Get the full Report on DXPE - FREE
Get the full Report on CVGI - FREE
Get the full Report on ANF - FREE
Get the full Report on ESRX - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
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/performance
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/performancefor information about the performance numbers displayed in this press release.
Image: Bigstock
Zacks.com featured highlights: Express Scripts Holding, Abercrombie & Fitch Co., Commercial Vehicle Group, DXP Enterprises and Plains GP Holdings
For Immediate Release
Chicago, IL –August 01, 2017 - Stocks in this week’s article includeExpress Scripts Holding Company (NASDAQ:ESRX – Free Report), Abercrombie & Fitch Co. (NYSE:ANF – Free Report),Commercial Vehicle Group, Inc. (NASDAQ:CVGI – Free Report), DXP Enterprises, Inc. (NASDAQ:DXPE – Free Report) and Plains GP Holdings, L.P. (NYSE:PAGP – Free Report).
5 Stocks Made Attractive by Recent Broker Rating Upgrades
The second-quarter reporting cycle is in full swing with multiple companies coming up with their quarterly financial numbers. The picture that has emerged so far is quite encouraging and the season remains on track to end on a strong note. A high proportion of companies have reported better-than-expected earnings per share in the current reporting cycle.
Generally, an earnings beat leads to an appreciation in stock price. Given this highly bullish backdrop, investors would like to add outperformers to their respective portfolios for healthy returns.
However, the task is far from easy with a plethora of companies present in the market. Moreover, the complexities associated with the stock market make it even more difficult for individual investors to select outperformers in the absence of proper guidance.
Be Guided by Broker Advice
The requisite guidance to design a winning portfolio comes from brokers. Brokers, not only scrutinize the publicly available financial documents, but also attend company conference calls and other presentations.
Since brokers arrive at their recommendation (buy, sell or hold) on a stock after thoroughly analyzing the nitty-gritty associated with the company, it is natural for investors to be guided by the direction of estimate revisions while deciding their course of action on a particular stock. Estimate revisions serve as an important pointer regarding the price of a stock. In fact, a rating upgrade generally leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade.
Estimates can move north for a number of reasons – favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario.
Making the Most of Broker Opinions
We have designed a screen to shortlist stocks based on improving analyst recommendation and upward revisions in earnings estimates over the last four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy foolproof.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).
% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).
We have also added the following screening parameters to ensure that the strategy is a winning one:
Price-to-Sales = Bot%10 (The lower the ratio the better, companies meeting this criteria are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio).
Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).
Com/ADR/Canadian= Com (This takes out the ADR and Canadian stocks).
Here are five of the 10 stocks that made it through the screen:
St. Louis, MO-based Express Scripts Holding Company (NASDAQ:ESRX – Free Report) is the largest pharmacy benefit manager (PBM) in North America. It has an impressive record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the last four quarters by an average of 0.62%. It carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abercrombie & Fitch Co. (NYSE:ANF – Free Report) operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of over 700 stores in the United States and multiple stores across Canada, Europe, Asia, Australia and the Middle East. This Zacks Rank #3 stock has an impressive expected earnings per share growth rate of 14% for 3–5 years.
New Albany, OH-basedCommercial Vehicle Group, Inc. (NASDAQ:CVGI – Free Report) supplies interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market. Last quarter, this Zacks Rank #1 company had posted earnings of 8 cents per share, while our expectation was of a breakeven.
DXP Enterprises, Inc. (NASDAQ:DXPE – Free Report) supplies maintenance, repair and operating products, equipment and services to industrial customers. Over the last 60 days, the Zacks Consensus Estimate for this Zacks Rank #2 (Buy) company rose 2.5% to 81 cents for 2017 and 3.2% to $1.28 for 2018.
Plains GP Holdings, L.P. (NYSE:PAGP – Free Report), through its subsidiaries, is involved primarily in the transportation, storage and marketing of crude oil and refined products. The Zacks Consensus Estimate for this Zacks Rank #3 stock has increased 9.1% to 24 cents per share over the last 30 days.
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.
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. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time!Click here for your free subscription to Profit from the Pros.
Get the full Report on PAGP - FREE
Get the full Report on DXPE - FREE
Get the full Report on CVGI - FREE
Get the full Report on ANF - FREE
Get the full Report on ESRX - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
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/performance
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/performancefor information about the performance numbers displayed in this press release.