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.
Check 5 Broker-Friendly Stocks for Returns Amid Market Chaos
With inflation remaining sky-high in the United States, markets have been gripped by extreme volatility this year so far. To combat the surging inflation in the country, the Fed adopted a hawkish stance. Per the latest available data, the Consumer Price Index (CPI) inflation for September 2022 was up 8.2% year over year. The core CPI (excluding volatile food and energy items) increased 6.6% year over year in September compared with 6.5% in August.
As a result of this high reading, the Fed, which has already raised its core interest rate of 3% year to date, is likely to continue its interest-raising policy. Higher interest rates flare up the cost of borrowing, thus increasing the possibility of an economic slowdown.
This gloomy scenario and the uncertain path ahead are well reflected in the double-digit year-to-date declines in the Dow Jones Industrial Average, Nasdaq composite and the S&P 500 indexes. Despite the current turmoil, turning one's back on equities is never advisable. So what's the way forward?
One way is to adhere to broker advice. Broker-friendly stocks like American Airlines, Delta Air Lines, CVR Energy, Bunge Ltd. and Cardinal Health are worth having a look at for healthy returns.
Why Broker Advice is the Need of the Hour
In the absence of proper guidance, individual investors may end up selecting wrong stocks for their portfolio. This might waste their hard-earned money, which they invested in the stock markets.
As brokers indulge in extensive research on stocks under their coverage, they have access to much detailed information on a company. To this end, they attend company conference calls/presentations and scrutinize every piece of document available in the public domain. After thorough research, brokers recommend (buy, sell or hold) a stock. Naturally, individual investors should avail of brokers' handy tips while designing a winning basket of stocks.
Winning Strategy
The above write-up clearly suggests that by following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we designed a screen to shortlist stocks based on improving analyst recommendations and northward revisions of earnings estimates over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is included. The price/sales ratio takes care of a company's top line, making the strategy foolproof.
Here are five of the 10 stocks that passed the screen test:
American Airlines is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are hurting the bottom line.
Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 10.9% upward. AAL currently carries a Zacks Rank #3 (Hold).
Delta, currently carrying a Zacks Rank of 3, is based in Atlanta, GA. DAL is being bolstered by the uptick in demand for air travel (particularly for leisure). High fuel costs are, however, a bane.
Delta's earnings outshined the Zacks Consensus Estimate in two of the last four quarters (missing the mark in the remaining two quarters). The average beat is 7.9%.
CVR Energy is an independent refiner and marketer of high-value transportation fuels. CVI is also a producer of ammonia and urea ammonia nitrate fertilizers. CVI's petroleum business includes full-coking sour crude refinery in Coffeyville, KS. Its efforts to reward its shareholders underline its strong financial position. The robust Nitrogen Fertilizer unit is supporting growth.
CVR Energy, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.30% over the past 60 days.
Bunge : Headquartered in St. Louis, MO, Bunge operates as an agribusiness firm, delivering essential food, feed and fuel across the globe. BG is reportedly the world's leader in oilseed processing, and a leading producer and supplier of specialty plant-based oils and fats.
Bunge delivered a trailing four-quarter earnings surprise of 50.7%, on average. BG has a long-term earnings growth expectation of 6.7%. It currently carries a Zacks Rank of 3.
Cardinal Health is being well-served by its pharmaceutical segment. Its diversified product portfolio bodes well. CAH's acquisition-driven strategy is encouraging as well.
Cardinal Health is currently Zacks #3 Ranked. The Zacks Consensus Estimate for CAH's current-year earnings has risen 2.7% year over year from the 2021 actuals.
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 backtest 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/performancefor 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 include American Airlines, Delta Air Lines, CVR Energy, Bunge Ltd. and Cardinal Health
For Immediate Release
Chicago, IL – October 24, 2022 – Stocks in this week’s article are American Airlines (AAL - Free Report) , Delta Air Lines (DAL - Free Report) , CVR Energy (CVI - Free Report) , Bunge Ltd. (BG - Free Report) and Cardinal Health (CAH - Free Report) .
Check 5 Broker-Friendly Stocks for Returns Amid Market Chaos
With inflation remaining sky-high in the United States, markets have been gripped by extreme volatility this year so far. To combat the surging inflation in the country, the Fed adopted a hawkish stance. Per the latest available data, the Consumer Price Index (CPI) inflation for September 2022 was up 8.2% year over year. The core CPI (excluding volatile food and energy items) increased 6.6% year over year in September compared with 6.5% in August.
As a result of this high reading, the Fed, which has already raised its core interest rate of 3% year to date, is likely to continue its interest-raising policy. Higher interest rates flare up the cost of borrowing, thus increasing the possibility of an economic slowdown.
This gloomy scenario and the uncertain path ahead are well reflected in the double-digit year-to-date declines in the Dow Jones Industrial Average, Nasdaq composite and the S&P 500 indexes. Despite the current turmoil, turning one's back on equities is never advisable. So what's the way forward?
One way is to adhere to broker advice. Broker-friendly stocks like American Airlines, Delta Air Lines, CVR Energy, Bunge Ltd. and Cardinal Health are worth having a look at for healthy returns.
Why Broker Advice is the Need of the Hour
In the absence of proper guidance, individual investors may end up selecting wrong stocks for their portfolio. This might waste their hard-earned money, which they invested in the stock markets.
As brokers indulge in extensive research on stocks under their coverage, they have access to much detailed information on a company. To this end, they attend company conference calls/presentations and scrutinize every piece of document available in the public domain. After thorough research, brokers recommend (buy, sell or hold) a stock. Naturally, individual investors should avail of brokers' handy tips while designing a winning basket of stocks.
Winning Strategy
The above write-up clearly suggests that by following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we designed a screen to shortlist stocks based on improving analyst recommendations and northward revisions of earnings estimates over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is included. The price/sales ratio takes care of a company's top line, making the strategy foolproof.
Here are five of the 10 stocks that passed the screen test:
American Airlines is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are hurting the bottom line.
Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 10.9% upward. AAL currently carries a Zacks Rank #3 (Hold).
Delta, currently carrying a Zacks Rank of 3, is based in Atlanta, GA. DAL is being bolstered by the uptick in demand for air travel (particularly for leisure). High fuel costs are, however, a bane.
Delta's earnings outshined the Zacks Consensus Estimate in two of the last four quarters (missing the mark in the remaining two quarters). The average beat is 7.9%.
CVR Energy is an independent refiner and marketer of high-value transportation fuels. CVI is also a producer of ammonia and urea ammonia nitrate fertilizers. CVI's petroleum business includes full-coking sour crude refinery in Coffeyville, KS. Its efforts to reward its shareholders underline its strong financial position. The robust Nitrogen Fertilizer unit is supporting growth.
CVR Energy, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.30% over the past 60 days.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Bunge : Headquartered in St. Louis, MO, Bunge operates as an agribusiness firm, delivering essential food, feed and fuel across the globe. BG is reportedly the world's leader in oilseed processing, and a leading producer and supplier of specialty plant-based oils and fats.
Bunge delivered a trailing four-quarter earnings surprise of 50.7%, on average. BG has a long-term earnings growth expectation of 6.7%. It currently carries a Zacks Rank of 3.
Cardinal Health is being well-served by its pharmaceutical segment. Its diversified product portfolio bodes well. CAH's acquisition-driven strategy is encouraging as well.
Cardinal Health is currently Zacks #3 Ranked. The Zacks Consensus Estimate for CAH's current-year earnings has risen 2.7% year over year from the 2021 actuals.
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 backtest 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.
this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1995458/check-5-broker-friendly-stocks-for-returns-amid-market-chaos
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/performancefor information about the performance numbers displayed in this press release.