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Zacks.com highlights: Safeguard Scientifics, Exantas Capital, Champions Oncology, Stars Group and GDS Holdings

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For Immediate Release

Chicago, IL – August 10, 2018 - Stocks in this week’s article include: Safeguard Scientifics, Inc. , Exantas Capital Corp. , Champions Oncology, Inc. (CSBR - Free Report) , The Stars Group Inc. and GDS Holdings Limited (GDS - Free Report) .

Screen of the Week of Zacks Investment Research:

5 Stocks to Buy as New Analysts Show Interest

Coverage initiation by analyst(s) on a stock inevitably leads to increased investor enthusiasm. This is because investors assume that there is something in the stock that has attracted analyst attention. In other words, they assume that the company coming under the microscope definitely has some value.

Why do analysts initiate coverage? Of course, stocks are not randomly picked to cover. A new coverage on a stock is usually the result of a promising future envisioned by the analyst(s). At times, increased investors’ 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?

Analyst Coverage & Price Movement

Interestingly, price movement is generally a function of the recommendations from new analysts. Stocks typically see an upward price movement on new analyst coverage compared to what they witness 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.

Now, if an analyst issues a new recommendation on a company that has limited or no existing coverage, investors take notice of the stock. Also, any new information attracts portfolio managers to build a position in the stock.

And that's what we're screening for today…

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/317170/5-stocks-to-buy-as-new-analysts-show-interest

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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

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Champions Oncology, Inc. (CSBR) - free report >>

GDS Holdings (GDS) - free report >>