A number of fundamental and technical aspects are involved in recognizing stocks with strong growth potential. Further, the current volatile markets and economic slowdown amid the coronavirus pandemic are big near-term concerns.
Hence, it’s not an easy task for individual investors to select stocks on their own. This is where expert advice comes in handy. By following broker rating upgrades, you can effortlessly find attractive stocks. Brokers have a deeper insight into what’s happening in a particular company, as they directly communicate with the top management. Also, they exhaustively go through the company’s publicly available documents and attend conference calls. Moreover, brokers have a deeper understanding of the overall industry. They place the company fundamentals against the present economic backdrop to figure out how the stock will fare as an investment. So, when a broker upgrades a stock, you can certainly rely on their judgment. Nonetheless, depending solely on broker upgrade is not a great idea to build your investment portfolio. You should also take into account other factors to ensure steady returns. Picking the Winning Strategy
We have a screening strategy that will help you in your search for potential winners:
Broker Rating Upgrades (four weeks) of 1% or more: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the last four weeks. Current Price greater than $5: The stocks must be trading above $5. Average 20-day Volume greater than 100,000: A large trading volume guarantees that the stock is easily tradable. Zacks Rank equal to #1 or 2: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have a proven record of success. You can see e. the complete list of today’s Zacks #1 Rank stocks here VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential. Here are three of the five stocks that qualified the screening: Based in Tysons, VA, TEGNA Inc. ( TGNA Quick Quote TGNA - Free Report) has evolved as one of the largest U.S. broadcasting groups, and a leading local news as well as media content provider. The company’s long-term (three to five years) estimated earnings growth rate is 10%. The stock, currently carrying a Zacks Rank #2, has witnessed 14.3% upward revision in broker ratings over the past four weeks. Wayfair Inc. ( W Quick Quote W - Free Report) is one of the world's leading online sellers of home goods products, consisting of furniture and home decor. This Boston, MA-based company’s long-term estimated earnings growth rate is 23%. The stock, carrying a Zacks Rank #2 at present, has witnessed 7.7% upward revision in broker ratings over the past four weeks. Headquartered in Franklin, TN, Tivity Health, Inc. ( TVTY Quick Quote TVTY - Free Report) provides fitness, nutrition and social connection solutions. Its long-term estimated earnings growth rate is 10%. The stock, currently sporting a Zacks Rank #1, has witnessed 11.1% upward revision in broker ratings over the past four weeks. Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software. 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 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: https://www.zacks.com/performance