For Immediate Release
Chicago, IL – September 1, 2020 - Stocks in this week’s article are BlueLinx Holdings (BXC - Free Report) , Diebold Nixdorf (DBD - Free Report) , ArcBest Corp. (ARCB - Free Report) , Community Health Systems (CYH - Free Report) and Clearwater Paper Corp. (CLW - Free Report) .
5 Stocks that Brokers Favor Amid Ongoing Pandemic
The market seems in a good shape despite the persistence of coronavirus woes. The three major stock indexes, namely the Dow, the S&P 500 and the Nasdaq Composite have been rallying of late. In a bid to turn this bullish scenario to their advantage, investors would like to design a winning portfolio of stocks.
However, with a plethora of stocks flooding the market at any point in time, pinpointing winning stocks is by no means an easy task for individual investors. Thus, in absence of proper guidance, identifying a winning stock is like searching ‘a needle in a haystack’ for an investor. The correct direction or advice in this context comes from brokers, who are deemed experts and are equipped with vast knowledge on the field of investment.
Since brokers recommend (buy, sell or hold) a stock only after thoroughly analyzing the respective company’s nitty-gritties, it is but natural for investors to be led by broker-ascertained estimate revisions while determining their choice of stock. The estimate revisions serve as an important indicator regarding the stock price performance. In fact, a rating upgrade generally leads to stock price appreciation. Similarly, the share may plummet following a rating downgrade.
The above write-up clearly suggests that by following brokers’ business acumen and a keen eye for detail, one can arrive at a lucrative portfolio of stocks. Keeping this in mind, we designed a screen to shortlist stocks based on an improving analyst recommendation and upward revisions to earnings estimates over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is included as a key criterion for shortlisting the best bets. The price/sales ratio takes care of the company’s top line, making the strategy foolproof.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1050420/5-stocks-that-brokers-favor-amid-coronavirus-crisis?art_rec=quote-stock_overview-zacks_news-ID01-txt-1050420
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
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.