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Wall Street bulls held their ground at the Nasdaq’s 21-day moving average again on Monday. Buyers also began to wrestle back control and turn the tech-heavy index and the S&P 500 green by mid-day following earlier losses on Tuesday.
The market now waits on Jay Powell and the Fed to announce their plan for rates in the near-term on Wednesday afternoon. Wall Street is almost certain the Fed will keep its core rate unchanged. Yields on the 10-year U.S. Treasury signal that Wall Street understands rates will be higher for longer.
Still, the bulls appear in control because the outlook for earnings remains stellar and rates have almost certainly peaked already. Therefore, investors likely want to remain exposed to the market in 2024 (and beyond).
One way to find potentially winning stocks to buy in March, April, and throughout the year is to search for companies gaining more attention from Wall Street analysts.
The concept is simple: analysts are more inclined to start covering a stock they think has huge upside potential vs. picking up coverage only to say stay away.
New Analyst Coverage
Broker recommendations play their part no matter how investors feel about them. And we seemingly all take a look no matter what. Individual investors, large institutional portfolio managers, and everyone in between are likely pleased to see one of their stocks get an upgraded rating or a new analyst cover the company.
Investor interest can generate more analyst coverage. This helps explain why analysts jump on young, much-hyped and talked about tech companies. Then, as new coverage is initiated, the company and the stock become more visible, which in turn often leads to more demand potential and therefore the possibility of higher prices.
Plus, analysts almost always initiate coverage with a positive recommendation. And the logic follows because why spend all the time and write a research report on a company not widely tracked only to say it’s not good?
When it comes to companies with little to no analyst coverage, one new recommendation can sometimes give portfolio managers the validation they need to build a position. And the more money they can invest, the more they can potentially influence prices.
The best way to use this information is to search for companies with analyst coverage that has increased over the last 4 weeks. We just look at the number of analyst recommendations today and compare it to the number of analyst recommendations 4 weeks ago.
The rule of thumb here is that an increase in coverage leans bullish and a decrease signals bearish behavior. It is also worth pointing out that, in general, the change in the average broker recommendation is a better indicator than the actual recommendation itself.
On top of that, it is typically more bullish if the increase went from none to one or if the coverage was minimal to begin with. (As the number of analysts climbs the addition of new coverage isn’t earth-shattering.) In the end, increased coverage is still better than decreased coverage, unless the coverage is heading in the wrong direction.
Now let’s try this screen…
• Number of Broker Ratings now greater than the Number of Broker Ratings four weeks ago
(This shows stocks where new coverage has recently been added.)
• Average Broker Rating less than Average Broker Rating four weeks ago
(By 'less than', we mean 'better than' four weeks ago.)
• Prices greater than or equal to 5
(We’re applying all of the above parameters to stocks above $5 a share since many money managers won't even look at stocks under $5)
• Average Daily Volume greater than or equal to 100,000 shares
(If there's not enough volume, even individual investors won't want it).
Here is one of the four stocks that came through the screen today…
CG Oncology, Inc. ((CGON - Free Report) ) - (from 1 analyst four weeks ago to 5)
CG Oncology, Inc. went public in late January 2024. CG Oncology is a late-stage clinical biopharmaceutical firm focused on developing and commercializing a “potential backbone bladder-sparing therapeutic for patients afflicted with bladder cancer.”
The Irvine, California-based developer of a bladder cancer therapy has been up and down since its IPO. CGON trades for around $40 per share right now with a $2.6 billion market cap.
Wall Street is quickly adding coverage of CG Oncology as investors look to benefit from a possible breakout in the wider biotech market. Biotech stocks started to make a comeback in the back half of 2023 after the Fed signaled it was done raising rates.
The iShares Biotechnology ETF ((IBB - Free Report) ) has climbed 20% since rates peaked in October 2023. Plus, “biotechnology IPOs tend to do well over the long term just as financing markets begin to thaw,” according to a recent Wall Street Journal article.
CG Oncology trades 75% below its average Zacks price target. On top of that, four of the five brokerage recommendations Zacks has are “Strong Buys.” CG Oncology’s earnings outlook is also improving.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
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.
Image: Bigstock
How to Find Up-and-Coming Stocks to Buy Right Now
Wall Street bulls held their ground at the Nasdaq’s 21-day moving average again on Monday. Buyers also began to wrestle back control and turn the tech-heavy index and the S&P 500 green by mid-day following earlier losses on Tuesday.
The market now waits on Jay Powell and the Fed to announce their plan for rates in the near-term on Wednesday afternoon. Wall Street is almost certain the Fed will keep its core rate unchanged. Yields on the 10-year U.S. Treasury signal that Wall Street understands rates will be higher for longer.
Still, the bulls appear in control because the outlook for earnings remains stellar and rates have almost certainly peaked already. Therefore, investors likely want to remain exposed to the market in 2024 (and beyond).
One way to find potentially winning stocks to buy in March, April, and throughout the year is to search for companies gaining more attention from Wall Street analysts.
The concept is simple: analysts are more inclined to start covering a stock they think has huge upside potential vs. picking up coverage only to say stay away.
New Analyst Coverage
Broker recommendations play their part no matter how investors feel about them. And we seemingly all take a look no matter what. Individual investors, large institutional portfolio managers, and everyone in between are likely pleased to see one of their stocks get an upgraded rating or a new analyst cover the company.
Investor interest can generate more analyst coverage. This helps explain why analysts jump on young, much-hyped and talked about tech companies. Then, as new coverage is initiated, the company and the stock become more visible, which in turn often leads to more demand potential and therefore the possibility of higher prices.
Plus, analysts almost always initiate coverage with a positive recommendation. And the logic follows because why spend all the time and write a research report on a company not widely tracked only to say it’s not good?
When it comes to companies with little to no analyst coverage, one new recommendation can sometimes give portfolio managers the validation they need to build a position. And the more money they can invest, the more they can potentially influence prices.
The best way to use this information is to search for companies with analyst coverage that has increased over the last 4 weeks. We just look at the number of analyst recommendations today and compare it to the number of analyst recommendations 4 weeks ago.
The rule of thumb here is that an increase in coverage leans bullish and a decrease signals bearish behavior. It is also worth pointing out that, in general, the change in the average broker recommendation is a better indicator than the actual recommendation itself.
On top of that, it is typically more bullish if the increase went from none to one or if the coverage was minimal to begin with. (As the number of analysts climbs the addition of new coverage isn’t earth-shattering.) In the end, increased coverage is still better than decreased coverage, unless the coverage is heading in the wrong direction.
Now let’s try this screen…
• Number of Broker Ratings now greater than the Number of Broker Ratings four weeks ago
(This shows stocks where new coverage has recently been added.)
• Average Broker Rating less than Average Broker Rating four weeks ago
(By 'less than', we mean 'better than' four weeks ago.)
• Prices greater than or equal to 5
(We’re applying all of the above parameters to stocks above $5 a share since many money managers won't even look at stocks under $5)
• Average Daily Volume greater than or equal to 100,000 shares
(If there's not enough volume, even individual investors won't want it).
Here is one of the four stocks that came through the screen today…
CG Oncology, Inc. ((CGON - Free Report) ) - (from 1 analyst four weeks ago to 5)
CG Oncology, Inc. went public in late January 2024. CG Oncology is a late-stage clinical biopharmaceutical firm focused on developing and commercializing a “potential backbone bladder-sparing therapeutic for patients afflicted with bladder cancer.”
The Irvine, California-based developer of a bladder cancer therapy has been up and down since its IPO. CGON trades for around $40 per share right now with a $2.6 billion market cap.
Wall Street is quickly adding coverage of CG Oncology as investors look to benefit from a possible breakout in the wider biotech market. Biotech stocks started to make a comeback in the back half of 2023 after the Fed signaled it was done raising rates.
The iShares Biotechnology ETF ((IBB - Free Report) ) has climbed 20% since rates peaked in October 2023. Plus, “biotechnology IPOs tend to do well over the long term just as financing markets begin to thaw,” according to a recent Wall Street Journal article.
CG Oncology trades 75% below its average Zacks price target. On top of that, four of the five brokerage recommendations Zacks has are “Strong Buys.” CG Oncology’s earnings outlook is also improving.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
Click here to sign up for a free trial to the Research Wizard today.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure