A number of fundamental and technical aspects are involved in identifying stocks with robust growth potential. It’s not an easy task for individual investors to select stocks on their own. Therefore, guidance from the experts is crucial.
By following broker rating upgrades, an investor can easily find attractive stocks. Brokers have an in-depth idea about what’s happening in a particular company, as they directly communicate with the top management. Also, they exhaustively go through the company’s publicly available documents and attend conference calls. In addition, brokers have a thorough understanding of the overall industry. They place the company fundamentals against the current economic backdrop to figure out how the stock will fare as an investment. Therefore, when a broker upgrades a stock, you can rely on their judgment. Yet, depending only on broker upgrades is not a great idea to build your investment portfolio. You should also take into account some 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 four stocks that qualified the screening: Steven Madden, Ltd. ( SHOO Quick Quote SHOO - Free Report) designs, sources, markets, and sells fashion-forward name brand and private label footwear as well as private label fashion handbags and accessories. The Long Island City, NY-based company’s earnings for 2021 are projected to jump 228.1%. The stock, currently sporting a Zacks Rank #1, has witnessed a 14.3% upward revision in broker ratings over the past four weeks. Headquartered in Vancouver, Canada, Methanex Corporation ( MEOH Quick Quote MEOH - Free Report) is the world’s largest supplier of methanol to North America, Asia-Pacific, Europe, and Latin America. The company’s earnings are projected to surge 392% for 2021. The stock, sporting a Zacks Rank #1 at present, has witnessed a 12.5% upward revision in broker ratings over the past four weeks. Teradata Corporation ( TDC Quick Quote TDC - Free Report) , based in San Diego, CA, is a leading provider of hybrid cloud analytics software. The company’s 2021 earnings are expected to rise 49.6%. The stock, which currently carries a Zacks Rank #2, has witnessed a 12.5% upward revision in broker ratings over the past four weeks. Based in Rome, Italy, Eni SpA ( E Quick Quote E - Free Report) is among the leading integrated energy players in the world. Its earnings for 2021 are projected to soar at a rate of 543.8%. The stock, which at present carries a Zacks Rank #2, has witnessed a 16.7% 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