Back to top

Image: Shutterstock

Zacks.com featured highlights include Blue Bird, CNA Financial and Cvent Holding

Read MoreHide Full Article

For Immediate Release

Chicago, IL – February 22, 2023 – Stocks in this week’s article are Blue Bird Corp. (BLBD - Free Report) , CNA Financial Corp. (CNA - Free Report) and Cvent Holding Corp. .

New Analysts Initiate Coverage: 3 Stocks to Keep an Eye On

Investors depend on research work provided by analysts as they fear that lack of information while exploring on their own might trigger errors. Here, analysts play a vital intermediary role as they have extensive access to relevant data.

Blue Bird Corp., CNA Financial Corp. and Cvent Holding Corp. are some stocks that have seen new analyst coverage lately and are therefore expected to attract investors' attention.

Coverage initiation of a stock by analyst(s) usually portrays higher investor inclination. Investors, on their part, often assume that 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 investor 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 more preferable than 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 is witnessed with a rating upgrade under an existing coverage. Positive recommendations — Buy and Strong Buy — generally lead to a significantly 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 little 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.

Below, we have selected three stocks that have seen increased analyst coverage over the past few weeks.

Here are three of the seven stocks that passed the screen:

Blue Bird: Based in Macon, GA, this company designs, engineers, manufactures and sells school buses and related parts in the United States, Canada, and internationally.

BLBD currently carries a Zacks Rank #2 (Buy). The stock has gained 75.1% over the past three months, outperforming the industry's 7.7% rise. Earnings estimates for fiscal 2023 have increased to 46 cents per share from 35 cents per share over the past 30 days. The estimated figure implies 140% growth from the year-ago period, thanks to solid demand for Blue Bird's best-in-class school buses. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

CNA Financial: This company is a subsidiary of Loews Corporation, providing commercial property and casualty insurance products in the United States and internationally.

CNA currently carries a Zacks Rank #2. The stock has gained 6.5% over the past three months, underperforming the industry's 8% growth. Earnings estimates for 2023 indicate 10.7% growth from the year-ago period. Earnings estimates for 2023 have increased to $4.25 per share from $4.08 per share over the past 30 days.

Cvent Holding: Based in Tysons, VA, CVT provides a cloud-based enterprise event marketing, management, and hospitality platform in North America and internationally.

CVT currently carries a Zacks Rank #3 (Hold). The stock has gained 41.1% over the past six months, faring better than the industry's 8.8% decline. Earnings estimates for 2023 indicate 18.4% growth 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/2056698/new-analysts-initiate-coverage-3-stocks-to-keep-an-eye-on

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


CNA Financial Corporation (CNA) - free report >>

Blue Bird Corporation (BLBD) - free report >>

Published in