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Buy the Best Highly-Ranked Stocks this Earnings Season

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Key Takeaways

  • Utilize a Zacks screen to help find some of the best #1 (Strong Buy) stocks.
  • Buy under-the-radar financial stock CHMG before it breaks out.

JPMorgan Chase beat earnings estimates on Tuesday morning as JPM and other Wall Street titans kicked off the second quarter reporting season. The overall earnings outlook remains strong, and investors have shaken off the new tariff war to send the stock market to all-time highs.

Wall Street jumped back into the risk end of the market in full force, pushing Bitcoin to fresh peaks in the middle of July as well.

Investors looking to add to their portfolios or shake them up after the massive second quarter rally should utilize a screen to help find some of the best Zacks Rank #1 (Strong Buy) stocks. 

Zacks Rank #1 (Strong Buy) stocks outperform the market in good and bad times. However, there are over 200 stocks that earn a Zacks Rank #1 at any given time.

Therefore, it’s helpful to understand how to apply filters to the Zacks Rank in order to narrow the list down to a more manageable and tradable set of stocks.

Parameters

Clearly, there are only three items on this screen. But together, these three filters can result in some impressive returns.

• Zacks Rank equal to 1

Starting with a Zacks Rank #1 is often a strong jumping off point because it boasts an average annual return of roughly 24.4% per year since 1988.

• % Change (Q1) Est. over 4 Weeks greater than 0

Positive current quarter estimate revisions over the last four weeks.

• % Broker Rating Change over 4 Week equal to Top # 5

Top 5 stocks with the best average broker rating changes over the last four weeks.

This strategy comes loaded with the Research Wizard and is called bt_sow_filtered zacks rank5. It can be found in the SoW (Screen of the Week) folder.

Here is one of the five stocks that qualified for the Filtered Zacks Rank 5 strategy today…

Buy Under-the-Radar Financial Services Stock CHMG Before It Breaks Out

Chemung Financial Corporation ((CHMG - Free Report) ) is a financial holding company that operates primarily through its subsidiary, Chemung Canal Trust Company. The company boasts that it is New York’s oldest active independent bank, offering a range of banking and financial services. CHMG financial services portfolio includes personal checking accounts, CDs, money market accounts, home loans, and much more.

Zacks Investment Research
Image Source: Zacks Investment Research

Chemung Financial provides commercial, agricultural, and consumer loans (e.g., home equity, auto, and real estate loans), as well as wealth management services like trust, estate planning, and investment management. On top of that, its financial services subsidiary CFS Group, Inc. offers  non-traditional services including mutual funds, annuities, brokerage services, tax preparation services, and insurance.

The diversified financial services and banking company has grown its revenue significantly over the past three years. Chemung Financial is projected to expand its sales by 14% this year and 12% next year to help boost its adjusted earnings by 18% and 22%, respectively. Its earnings revision surged in 2025, including an 18% jump since its Q1 release, which helps it earn its Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

CHMG stock has jumped 110% in the past five years to outclimb the Finance Sector’s 90%. The thinly traded stock is neck and neck with the sector over the past decade, and it looks ready to possibly break out of a trading range it’s been stuck in since 2017. And Chemung Financial's 2.4% dividend yield is larger than its highly-ranked industry. 

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.

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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. 

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure


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