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Upgraded Broker Ratings Make These 3 Stocks Worth Buying Now

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A fundamental analysis is not enough to choose stocks that have the potential of generating attractive returns, given the present economic backdrop. One of the effective and easy ways to zero in on the right stocks is to follow broker rating upgrades.

Brokers have a deeper understanding of companies, sectors and the overall economy. Also, they directly communicate with top management. Further, they prudently go through the company’s publicly available documents and attend conference calls.

Also, they scrutinize the fundamentals of a company and place them against the current economic backdrop to determine how the stock will fare as an investment option. So, by following broker rating upgrades, you can effortlessly find stocks with solid returns.

Nonetheless, solely depending on broker upgrades is not the right way to build your portfolio. You must take into account certain 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 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 the three stocks that qualified the screening:

Based in Niwot, CO, Crocs, Inc. (CROX - Free Report) designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories.The company’s long-term (three to five years) estimated earnings growth rate is 15%. The stock, currently sporting a Zacks Rank #1, has witnessed 10% upward revision in broker ratings over the past four weeks.

Concho Resources Inc. is an independent oil and gas explorer, as well as producer. This Midland, TX-based company’s long-term estimated earnings growth rate is 11.9%. The stock, carrying a Zacks Rank #2 at present, has witnessed 4.6% upward revision in broker ratings over the past four weeks.

Headquartered in Houston, TX, Targa Resources Corp. (TRGP - Free Report) is a premier energy infrastructure company and a provider of integrated midstream services. Its long-term estimated earnings growth rate is 5%. The stock, currently carrying a Zacks Rank #2, has witnessed 6.3% upward revision in broker ratings over the past four weeks.

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


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Crocs, Inc. (CROX) - $25 value - yours FREE >>

Targa Resources, Inc. (TRGP) - $25 value - yours FREE >>

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