Selecting stocks from the vast investment universe is not an easy task. For this, you will have to understand the fundamentals of every company and try to place them against the present 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 deeper 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 with 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 a broker 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 the three stocks that qualified the screening: Funko, Inc. ( FNKO Quick Quote FNKO - Free Report) is consumer products company that designs, sources and distributes licensed pop culture products. This Everett, WA-based company’s earnings for 2021 are projected to soar 162.2%. The stock, currently carrying a Zacks Rank #2, has witnessed 12.5% upward revision in broker ratings over the past four weeks. Cummins Inc. CMI, based in Columbus, IN, is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products. Its earnings for 2021 are projected to grow at the rate of 31.1%. The stock, which currently sports a Zacks Rank #1, has witnessed 6.3% upward revision in broker ratings over the past four weeks. Deere & Company DE is the world’s largest producer of agricultural equipment. This Moline, IL-based company’s earnings are projected to surge 84.2% for 2021. The stock, carrying a Zacks Rank #2 at present, 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