Selecting stocks from the vast investment universe is not an easy task. For this, you will have to painstakingly go through the fundamentals of every company and try to place them against the current economic background to figure out how it may fare as an investment.
One way to cut this task out is to follow broker recommendation. Brokers have more insight into what’s happening in a particular company as they directly communicate with company management. Further, they have a deeper understanding of the overall industry. Specifically, brokers research on a company’s publicly available financial statements, listen to conference calls and engage in talks directly with the top management. At times, they even talk to customers to gauge what they like or dislike about the products and services offered by the company. So, after thorough research, brokers decide to rate that particular company’s stock. Naturally, when an analyst upgrades a stock, you can easily rely on it. However, solely depending on analysts’ upgrades is not the right way to build your investment portfolio. You should also take into consideration other factors to ensure solid 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 three of the five stocks that qualified the screening: Dow Inc. ( DOW Quick Quote DOW - Free Report) is a material science company that provides a world-class portfolio of advanced, sustainable and leading-edge products. This Midland, MI-based company’s earnings for 2021 are projected to increase 106.6%. The stock, currently carrying a Zacks Rank #2, has witnessed 5.9% upward revision in broker ratings over the past four weeks. Floor & Decor Holdings, Inc. ( FND Quick Quote FND - Free Report) is a multi-channel specialty retailer of hard surface flooring and related accessories. This Atlanta, GA-based company’s earnings are projected to increase 28.9% for 2021. The stock, carrying a Zacks Rank #2 at present, has witnessed 7.7% upward revision in broker ratings over the past four weeks. Based in Houston, TX, Par Pacific Holdings, Inc. ( PARR Quick Quote PARR - Free Report) owns, manages, and maintains interests in energy as well as infrastructure businesses. Its earnings for 2021 are projected to grow at the rate of 74.2%. The stock, which currently carries a Zacks Rank #2, 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