A basic fundamental analysis is not enough to select stocks that have the potential to generate robust returns. One effective and easy way 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. Further, they directly communicate with the top management. Further, brokers methodically 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 easily find attractive stocks. Yet, solely depending on broker upgrades is not the correct way to build investment portfolio. One must also take into account certain other factors to ensure steady returns. Choosing 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 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. of A or B: VGM Score Here are the five of the six stocks that qualified the screening: Regions Financial ( RF Quick Quote RF - Free Report) is a financial holding company, providing retail and commercial banking, trust, securities brokerage, insurance brokerage, mortgage and insurance products and services. This Birmingham, AL-based company’s earnings for 2021 are projected to increase 71.7%. The stock, currently sporting a Zacks Rank #1, has witnessed 5.3% upward revision in broker ratings over the past four weeks. Mohawk Industries ( MHK Quick Quote MHK - Free Report) is a global manufacturer of flooring products that enhance residential and commercial space. This Calhoun, GA-based company’s earnings for 2021 are projected to grow at the rate of 24.1%. The stock, carrying a Zacks Rank #2 at present, has witnessed 9.1% upward revision in broker ratings over the past four weeks. Headquartered in Duluth, GA, Asbury Automotive Group ( ABG Quick Quote ABG - Free Report) operates as an automotive retailer. Its earnings for 2021 are projected to grow at the rate of 13.9%. The stock, currently carrying a Zacks Rank #2, has witnessed 12.5% upward revision in broker ratings over the past four weeks. Silgan Holdings Inc. ( SLGN Quick Quote SLGN - Free Report) is a supplier of rigid packaging for consumer goods products. This Stamford, CT-based company’s earnings are projected to increase 2.7% for 2021. The stock, carrying a Zacks Rank #2 at present, has witnessed 11.1% upward revision in broker ratings over the past four weeks. Based in Denver, CO, DCP Midstream, LP ( DCP Quick Quote DCP - Free Report) owns, operates, acquires, and develops a portfolio of midstream energy assets. Its earnings for 2021 are projected to grow at the rate of 199.5%. The stock, currently sporting a Zacks Rank #1, has witnessed 10% 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