Investing can be a tedious process unless one knows how to search for potential winners from the vast universe of stocks. In order to make this task easier, it’s prudent to follow broker ratings.
Brokers have deeper insight into what’s happening in a particular company. So, following what the majority of them are saying about a stock can help you understand its potential easily. Brokers analyze the fundamentals of a company and place them against the present economic backdrop to figure out how the stock will fare as an investment. Also, they directly communicate with top management, attend conference calls and go through the company’s publicly available financial documents. Brokers even talk to customers to understand their likes/dislikes for the products and services offered by the company. Hence, there’s extensive research behind the rating of a broker on a company’s stock. When a broker upgrades a stock, you can easily rely on it. But merely depending on it is not wise though. One must take into consideration several other factors to ensure strong returns. Selecting 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: Encompass Health Corporation ( EHC Quick Quote EHC - Free Report) is a provider of integrated healthcare services and offers both facility-based and home-based patient care. The Birmingham, AL-based company’s earnings for 2021 are projected to soar 51.6%. The stock, currently carrying a Zacks Rank #2, has witnessed 11.1% upward revision in broker ratings over the past four weeks. Perficient, Inc. ( PRFT Quick Quote PRFT - Free Report) , based in St. Louis, MO, provides digital consultancy services and solutions. Its earnings for 2021 are projected to grow at the rate of 31.6%. The stock, which currently carries a Zacks Rank #2, has witnessed 20% upward revision in broker ratings over the past four weeks. Saia, Inc. ( SAIA Quick Quote SAIA - Free Report) operates as a transportation company in North America. This Johns Creek, GA-based company’s earnings are projected to surge 51.5% for 2021. The stock, carrying a Zacks Rank #2 at present, has witnessed 8.3% 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