We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks.com featured highlights Mercer International, Blucora, Universal Technical Institute, Hilton Grand Vacations and Kura Sushi
Read MoreHide Full Article
For Immediate Release
Chicago, IL – July 20, 2022 – Stocks in this week’s article are Mercer International Inc. (MERC - Free Report) , Blucora, Inc. , Universal Technical Institute, Inc. (UTI - Free Report) , Hilton Grand Vacations Inc. (HGV - Free Report) and Kura Sushi USA, Inc. (KRUS - Free Report) .
5 Stocks to Keep an Eye On as Analysts Initiate Coverage
Investors have immense faith in the research work of analysts as they fear that misinterpretations while researching on their own might trigger inefficiencies. Here, analysts play a vital intermediary role with their extensive access to relevant data.
Mercer International Inc., Blucora, Inc., Universal Technical Institute, Inc., Hilton Grand Vacations Inc. and Kura Sushi USA, Inc. are some stocks that have seen new analyst coverage lately. These, therefore, are expected to attract investor attention.
Coverage initiation of a stock by analyst(s) usually portrays higher investor inclination. Investors, on their part, often assume there is something special in a stock to attract analysts to cover it. In other words, they believe that the company coming under the microscope definitely has some value.
Obviously, stocks are not randomly chosen to cover. New coverage on a stock usually reflects a reassuring future envisioned by the analyst(s). At times, increased investors' focus on a stock motivates analysts to take a closer look at it. After all, who doesn't love to produce something that is already in demand? Hence, we often find that analysts' ratings on newly-added stocks are more favorable than their ratings on continuously covered stocks.
It is needless to say, the average change in broker recommendation is preferred over a single recommendation change.
How Does Analyst Coverage Influence Stock Price?
The price movement of a stock is generally a function of the recommendations on it from new analysts. Stocks typically see an upward price movement with a new analyst coverage compared to what they witness with a rating upgrade under an existing coverage. Positive recommendations — Buy and Strong Buy — generally lead to a significantly more positive price reaction than Hold recommendations. On the contrary, analysts hardly initiate coverage with a Strong Sell or Sell recommendation.
Now, if an analyst gives a new recommendation on a company that has very few or no existing coverage, investors start paying more attention to it. Also, any new information attracts portfolio managers to build a position in the stock.
So, it's a good strategy to bet on stocks that have seen increased analyst coverage over the last few weeks.
Here are the other screening parameters:
Price greater than or equal to $5 (as a stock below $5 will not likely create significant interest for most investors).
Average Daily Volume greater than or equal to 100,000 shares (if volume isn't enough, it will not attract individual investors).
Here are five out of the 12 stocks that passed the screen:
Mercer International: Headquartered in Vancouver, Canada, this company owns and operates a diverse pulp and paper business in the southern German states of Saxony and Thuringia.
MERC currently carries a Zacks Rank #1 (Strong Buy). The stock has gained 17.6% year to date (YTD) against the industry's 18.5% drop. Earnings estimates for 2022 have increased to $3.79 per share from $3.33 over the past 30 days. The estimated figure calls for a 46.9% increase from the year-ago period.
Blucora: This Dallas, TX-based company provides technology-enabled financial solutions.
The BCOR stock has gained 6.4% YTD compared with the industry's 44.6% decline. Earnings estimates for 2022 have increased to $1.82 per share from $1.75 over the past seven days. The estimated figure calls for a 3.4% increase from the year-ago period. BCOR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Universal Technical Institute: This Phoenix, AZ-based postsecondary education company provides transportation and technical training programs in the United States.
UTI currently carries a Zacks Rank #3 (Hold). The stock has lost 3% YTD compared with the industry's 10% drop. Earnings estimates for fiscal 2022 have increased 68.6% over the past 60 days to 59 cents per share. The estimated figure for fiscal 2022 calls for a 118.5% increase from the year-ago period.
Hilton Grand Vacations: Based in Orlando, FL, this company is engaged in the hospitality business and develops, markets, sells and manages vacation ownership resorts primarily under the Hilton Grand Vacations brand.
HGV currently carries a Zacks Rank #3. The stock has lost 26.9% YTD compared with the industry's 19.5% drop. The Zacks Consensus Estimate for 2022 earnings calls for a 62% increase from the year-ago period.
Kura Sushi USA: Headquartered in Irvine, CA, this company is a unit of Kura Sushi, Inc. and operates technology-enabled Japanese restaurants in the United States.
KRUS currently carries a Zacks Rank #3. The stock has lost 4.4% YTD, outperforming the industry's 18% decline. Loss estimates for 2022 have narrowed to 24 cents from 43 cents over the past month. The estimated figure calls for an 88.9% improvement from the year-ago period.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
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.
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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Zacks.com featured highlights Mercer International, Blucora, Universal Technical Institute, Hilton Grand Vacations and Kura Sushi
For Immediate Release
Chicago, IL – July 20, 2022 – Stocks in this week’s article are Mercer International Inc. (MERC - Free Report) , Blucora, Inc. , Universal Technical Institute, Inc. (UTI - Free Report) , Hilton Grand Vacations Inc. (HGV - Free Report) and Kura Sushi USA, Inc. (KRUS - Free Report) .
5 Stocks to Keep an Eye On as Analysts Initiate Coverage
Investors have immense faith in the research work of analysts as they fear that misinterpretations while researching on their own might trigger inefficiencies. Here, analysts play a vital intermediary role with their extensive access to relevant data.
Mercer International Inc., Blucora, Inc., Universal Technical Institute, Inc., Hilton Grand Vacations Inc. and Kura Sushi USA, Inc. are some stocks that have seen new analyst coverage lately. These, therefore, are expected to attract investor attention.
Coverage initiation of a stock by analyst(s) usually portrays higher investor inclination. Investors, on their part, often assume there is something special in a stock to attract analysts to cover it. In other words, they believe that the company coming under the microscope definitely has some value.
Obviously, stocks are not randomly chosen to cover. New coverage on a stock usually reflects a reassuring future envisioned by the analyst(s). At times, increased investors' focus on a stock motivates analysts to take a closer look at it. After all, who doesn't love to produce something that is already in demand? Hence, we often find that analysts' ratings on newly-added stocks are more favorable than their ratings on continuously covered stocks.
It is needless to say, the average change in broker recommendation is preferred over a single recommendation change.
How Does Analyst Coverage Influence Stock Price?
The price movement of a stock is generally a function of the recommendations on it from new analysts. Stocks typically see an upward price movement with a new analyst coverage compared to what they witness with a rating upgrade under an existing coverage. Positive recommendations — Buy and Strong Buy — generally lead to a significantly more positive price reaction than Hold recommendations. On the contrary, analysts hardly initiate coverage with a Strong Sell or Sell recommendation.
Now, if an analyst gives a new recommendation on a company that has very few or no existing coverage, investors start paying more attention to it. Also, any new information attracts portfolio managers to build a position in the stock.
So, it's a good strategy to bet on stocks that have seen increased analyst coverage over the last few weeks.
Here are the other screening parameters:
Price greater than or equal to $5 (as a stock below $5 will not likely create significant interest for most investors).
Average Daily Volume greater than or equal to 100,000 shares (if volume isn't enough, it will not attract individual investors).
Here are five out of the 12 stocks that passed the screen:
Mercer International: Headquartered in Vancouver, Canada, this company owns and operates a diverse pulp and paper business in the southern German states of Saxony and Thuringia.
MERC currently carries a Zacks Rank #1 (Strong Buy). The stock has gained 17.6% year to date (YTD) against the industry's 18.5% drop. Earnings estimates for 2022 have increased to $3.79 per share from $3.33 over the past 30 days. The estimated figure calls for a 46.9% increase from the year-ago period.
Blucora: This Dallas, TX-based company provides technology-enabled financial solutions.
The BCOR stock has gained 6.4% YTD compared with the industry's 44.6% decline. Earnings estimates for 2022 have increased to $1.82 per share from $1.75 over the past seven days. The estimated figure calls for a 3.4% increase from the year-ago period. BCOR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Universal Technical Institute: This Phoenix, AZ-based postsecondary education company provides transportation and technical training programs in the United States.
UTI currently carries a Zacks Rank #3 (Hold). The stock has lost 3% YTD compared with the industry's 10% drop. Earnings estimates for fiscal 2022 have increased 68.6% over the past 60 days to 59 cents per share. The estimated figure for fiscal 2022 calls for a 118.5% increase from the year-ago period.
Hilton Grand Vacations: Based in Orlando, FL, this company is engaged in the hospitality business and develops, markets, sells and manages vacation ownership resorts primarily under the Hilton Grand Vacations brand.
HGV currently carries a Zacks Rank #3. The stock has lost 26.9% YTD compared with the industry's 19.5% drop. The Zacks Consensus Estimate for 2022 earnings calls for a 62% increase from the year-ago period.
Kura Sushi USA: Headquartered in Irvine, CA, this company is a unit of Kura Sushi, Inc. and operates technology-enabled Japanese restaurants in the United States.
KRUS currently carries a Zacks Rank #3. The stock has lost 4.4% YTD, outperforming the industry's 18% decline. Loss estimates for 2022 have narrowed to 24 cents from 43 cents over the past month. The estimated figure calls for an 88.9% improvement from the year-ago period.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1954129/5-stocks-to-keep-an-eye-on-as-analysts-initiate-coverage?cid=CS-ZC-FT-analyst_blog%7Crw-1954129
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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.