It’s not easy for individual investors to choose profitable stocks on their own, given the number of fundamental and technical aspects that need to be considered. This is where expert advice comes in handy.
Since brokers communicate directly with the companies, they have a deeper insight into what’s happening. Hence, following what the majority of brokers are saying about a stock can help you understand its potential easily. Also, they analyze the fundamentals of the company and place them against the current economic backdrop to figure out how the stock will fare as an investment. Brokers have a better understanding of the overall industry and economy as well. Brokers analyze a company’s publicly available financial statements, attend conference calls and communicate directly with top management. So, 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. Yet, it’s not right to solely depend on analysts’ upgrades to build your investment portfolio. You must also take into consideration certain other factors to ensure strong returns. Picking 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: Interface, Inc. ( TILE Quick Quote 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 Denham, the U.K., InterContinental Hotels Group PLC ( IHG Quick Quote IHG - Free Report) owns, manages, franchises and leases hotels across the globe. The company operates hotels, resorts, restaurants and spas under the EVEN Hotels, HUALUXE Hotels and Resorts, Six Senses Hotels Resorts Spas, Atwell Suites, InterContinental Hotels & Resorts, Hotel Indigo, Crowne Plaza, Holiday Inn, Holiday Inn Express and Holiday Inn Club Vacations, among others. It also provides IHG Rewards loyalty program. InterContinental Hotels’ earnings are projected to jump 94.7% for 2022. The stock, carrying a Zacks Rank #2 at present, has witnessed a 33.3% upward revision in broker ratings over the past four weeks. Copa Holdings, S.A. ( CPA Quick Quote CPA - Free Report) , based in Panama City, Panama, provides airline passenger and cargo services. The company operates through a fleet of more than 75 aircraft consisting Boeing 737-Next Generation aircraft and Boeing 737 MAX 9 aircraft. Copa Holdings’ earnings are expected to surge 863.7% for 2022. The stock, which currently carries a Zacks Rank #2, has witnessed a 14.3% 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 tria l 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