Back to top

Image: Shutterstock

4 Stocks With Upgraded Broker Ratings for Enhanced Returns

Read MoreHide Full Article

Market sentiments have been fairly positive in the past several days. Though it indicates that fresh investments could be profitable, you could end up buying overvalued stocks. To avoid doing this, follow rating upgrades by brokers.

As brokers directly communicate with the top management, they have an in-depth idea about what’s happening in a particular company. They also diligently go through the company’s publicly available documents and even attend conference calls.

Further, brokers have a thorough understanding of the overall sector and industry. They place the company fundamentals against the current economic backdrop to figure out how the stock will fare as an investment.

So, when brokers upgrade a stock, you can rely on their judgment. But solely depending on broker upgrades is not a good way to build your investment portfolio. Several other factors should be taken into consideration to ensure stable 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.

VGM Score of A or B: 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.

Here are the four of five stocks that qualified the screening:

Interface, Inc. (TILE - Free Report) is a modular flooring company. TILE designs, produces, and sells modular carpet products primarily in the Americas, Europe, and the Asia-Pacific.

The Atlanta, GA-based company’s earnings for 2022 are projected to rise 18.1%. Interface, currently carrying a Zacks Rank #2, has witnessed a 50% upward revision in broker ratings over the past four weeks.

Headquartered in Burr Ridge, IL, Accel Entertainment (ACEL - Free Report) operates as a distributed gaming operator in the United States. The company also provides licensed establishment partners with gaming solutions that appeal to players who patronize those businesses.

Accel’s earnings are projected to increase 31.2% for 2022. The stock, carrying a Zacks Rank #2 at present, has witnessed a 25% upward revision in broker ratings over the past four weeks.

Tecnoglass (TGLS - Free Report) , based in Barranquilla, Colombia, manufactures, supplies, and installs architectural glass, windows, and associated aluminum products for the commercial and residential construction industries. It is a subsidiary of Energy Holding Corporation.

Tecnoglass’ earnings are expected to rise 20.7% for 2022. The stock, which currently sports a Zacks Rank #1, has witnessed a 20% upward revision in broker ratings over the past four weeks.

Based in Bozeman, MT, Fair Isaac Corporation (FICO - Free Report) develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions. The company operates through two segments, Scores and Software.

Fair Isaac’s earnings for fiscal 2022 are projected to rise at a rate of 20%. The stock, which at present carries a Zacks Rank #2, has witnessed a 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

Published in