While earnings performance is a good indicator of a stock’s future performance, market sentiments get easily influenced by corporate results and management commentary. Thus, identifying growth drivers becomes difficult and you could end up buying overpriced stocks with not much fundamental strength.
In such a situation, guidance from the experts is highly desirable. You can follow rating upgrades by brokers as they have a deeper understanding of stocks, the industries and the overall economy. Also, they communicate with the company executives and even attend conference calls. In addition, brokers comprehensively study the publicly available company documents and scrutinize the fundamentals. They place these against the present economic scenario to check how the stocks would fare as an investment option. Therefore, when a broker upgrades rating for any company you can easily rely on it. Nonetheless, just depending on broker upgrades is not the right way to build your investment portfolio. You should take into consideration certain other factors as well before picking any stock, so that there is solid return. 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. VGM Score of A or B: Here are the five of the 15 stocks that qualified the screening: Pilgrim's Pride Corporation ( PPC Quick Quote PPC - Free Report) is engaged in the processing, production, marketing and distribution of frozen, fresh as well as value-added chicken products. This Greeley, CO-based company’s earnings for 2021 are projected to increase 71.8%. The stock, currently sporting a Zacks Rank #1, has witnessed 25% upward revision in broker ratings over the past four weeks. Century Communities, Inc. ( CCS Quick Quote CCS - Free Report) is engaged in the design, development, construction, marketing, and sale of single-family attached and detached homes. This Greenwood Village, CO-based company’s earnings for 2021 are projected to grow at the rate of 1.5%. The stock, sports a Zacks Rank #1 at present, and has witnessed 25% upward revision in broker ratings over the past four weeks. Headquartered in San Jose, CA, Synaptics Incorporated ( SYNA Quick Quote SYNA - Free Report) develops, markets and sells intuitive human interface solutions. Its earnings for fiscal 2021 are projected to grow at the rate of 16.6%. The stock, currently carrying a Zacks Rank #2, has witnessed 20% upward revision in broker ratings over the past four weeks. Targa Resources Corp. ( TRGP Quick Quote TRGP - Free Report) is a premier energy infrastructure company. This Houston, TX-based company’s earnings are projected to increase 109.9% for 2021. The stock, carrying a Zacks Rank #2 at present, has witnessed 6.7% upward revision in broker ratings over the past four weeks. Based in Milwaukee, WI, Artisan Partners Asset Management Inc. ( APAM Quick Quote APAM - Free Report) is an investment management firm focused on providing high-value added, active investment strategies to clients globally. Its earnings for 2021 are projected to grow at the rate of 38.7%. The stock, currently sports a Zacks Rank #1, and has witnessed 25% 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