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3 Stocks With Upgraded Broker Ratings Amid Volatile Markets

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Markets have been extremely volatile over the past several days, mainly due to concerns over the Russia-Ukraine conflict. Thus, it has become very difficult for an individual investor to choose stocks on his own and gain from them amid the current situation.

So, what should an investor do to pick the right stocks? One way is to follow rating upgrades by brokers. Thus, in this regard, stocks like Polaris Inc. (PII - Free Report) , PulteGroup, Inc. (PHM - Free Report) and Laredo Petroleum, Inc. are worth betting on.

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

Brokers have a thorough understanding of the overall sector and industry too. They place the company fundamentals against the current economic backdrop to determine how the stock will fare as an investment. Hence, by following broker rating upgrades, one can easily find attractive stocks.

However, solely depending on broker upgrades is not the right way to build one’s investment portfolio. One must also take into consideration certain other factors before selecting any stock. This way, one can ensure robust 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.

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 three stocks that qualified the screening:

Medina, MN-based Polaris designs, engineers, manufactures and markets power sports vehicles globally. PII operates in five segments: ORV/Snowmobiles, Motorcycles, Global Adjacent Markets, Aftermarket and Boats.

The company’s earnings for 2022 are expected to grow 12.2%. Polaris, currently carrying a Zacks Rank #2, has witnessed a 12.5% upward revision in broker ratings over the past four weeks.

Based in Atlanta, GA, PulteGroup engages in homebuilding and financial services businesses, primarily in the United States. PHM conducts operations through two primary business segments – Homebuilding and Financial Services.

PulteGroup’s 2022 earnings are projected to jump 38.6%. The stock, carrying a Zacks Rank #2 at present, has witnessed a 9.1% upward revision in broker ratings over the past four weeks.

Laredo Petroleum is engaged in the acquisition, exploration and development of oil and natural gas properties in the Permian Basin of West Texas. Based in Tulsa, OK, LPI sells oil, natural gas liquids and natural gas.

The company’s earnings for 2022 are expected to surge 226.4%. Laredo Petroleum, which currently carries a Zacks Rank #2, has witnessed a 12.5% upward revision in broker ratings over the past four weeks.

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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


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