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 include American Airlines, Bread Financial, American Axle & Manufacturing Holdings, Boise Cascade and Abercrombie & Fitch
Read MoreHide Full Article
For Immediate Release
Chicago, IL – June 9, 2023 – Stocks in this week’s article are American Airlines (AAL - Free Report) , Bread Financial (BFH - Free Report) , American Axle & Manufacturing Holdings (AXL - Free Report) , Boise Cascade Company (BCC - Free Report) and Abercrombie & Fitch (ANF - Free Report) .
5 Broker-Favorite Stocks for Investors to Keep an Eye On
The debt-ceiling bill, which was signed into law by President Joe Biden earlier this month, has not only averted a major debt crisis but also seems to have infused life into the U.S. equity markets. The stellar job growth witnessed in May is another positive as far as economic health is concerned. The Labor Department stated that employers added 339,000 new jobs in May, much higher than expected. Moreover, U.S. regional bank stocks are also moving north owing to expectations of a pause in interest rate hikes.
Investors would do well to take advantage of the rosy scenario by focusing on broker-favorite stocks like American Airlines, Bread Financial, American Axle & Manufacturing Holdings, Boise Cascade Company and Abercrombie & Fitch.
Here’s Why Broker-Advice Needs to be Followed
Brokers, irrespective of their types (sell-side, buy-side or independent), have at their disposal a lot more information on a company and its prospects than individual investors. They go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations.
As brokers often directly communicate with the top brass, they gain an in-depth understanding of what is happening in a particular company. Therefore, the question of their action being arbitrary does not arise. In fact, a rating upgrade or downgrade by brokers has the potential to influence the price of the stock.
A rating upgrade often leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade. In view of the above attributes, broker action should be relied on by individual investors, in their quest to form a winning portfolio of stocks.
Formulating a Winning Portfolio
We have designed a screener to arrive at stocks based on improving analyst recommendation and upward earnings estimate revisions over the last four weeks. However, considering only these factors does not make our strategy foolproof as the top line has not been considered.
Actually, according to many market watchers, a top-line outperformance is more creditable for a company than a mere earnings outperformance. To address top-line concerns, we have included the price/sales ratio in our screener which serves as a strong complementary valuation metric.
Here are five of the 10 stocks that made it through the screen:
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 Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 12.76% upward. American Airlines currently carries a Zacks Rank #3 (Hold).
Bread Financial, based in Columbus, OH, continues to benefit from data-driven marketing strategies. Solid receivables growth in Card Services should drive its top line. Acquisitions and divestitures will aid the company in growing inorganically and expanding its international footprint.
Over the past 60 days, the Zacks Consensus Estimate for BFH’s 2023 earnings has been revised 21.54% upward. Bread Financial currently carries a Zacks Rank #3.
American Axle’s significant strides and collaborations in the electric drive space bode well for its top- and bottom- line growth. Efforts aimed at diversifying its business, products and customer base are generating impressive results for the company.
American Axle has an impressive surprise history, with its earnings surpassing the Zacks Consensus Estimate in three of the last four quarters (missing the mark on the other occasion). AXL currently carries a Zacks Rank #3.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids through a network of approximately 850 stores across North America, Europe, Asia and the Middle East.
The company stated recently that its brands performed well in the holiday season. Abercrombie, currently sporting a Zacks Rank #1 (Strong Buy), is working toward rationalizing its store base by reducing its dependence on underperforming tourist-driven locations. The Zacks Consensus Estimate for current-year earnings has increased 32.87% over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boise Cascade Company: Based in Boise, ID, this company makes wood products and distributes building materials in the United States as well as Canada. Although BCC acknowledges that the industry will face challenges during 2023, given the current economic uncertainties and weaker near-term demand for new residential construction, it remains well-positioned to execute the growth initiatives started in 2022.
Boise Cascade, currently carrying a Zacks Rank #3, has also been increasing commodity offerings that will instill growth in the existing and underserved markets, and across its entire national footprint. The Zacks Consensus Estimate for current-year earnings has increased 5.61% over the past 60 days.
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: Bigstock
Zacks.com featured highlights include American Airlines, Bread Financial, American Axle & Manufacturing Holdings, Boise Cascade and Abercrombie & Fitch
For Immediate Release
Chicago, IL – June 9, 2023 – Stocks in this week’s article are American Airlines (AAL - Free Report) , Bread Financial (BFH - Free Report) , American Axle & Manufacturing Holdings (AXL - Free Report) , Boise Cascade Company (BCC - Free Report) and Abercrombie & Fitch (ANF - Free Report) .
5 Broker-Favorite Stocks for Investors to Keep an Eye On
The debt-ceiling bill, which was signed into law by President Joe Biden earlier this month, has not only averted a major debt crisis but also seems to have infused life into the U.S. equity markets. The stellar job growth witnessed in May is another positive as far as economic health is concerned. The Labor Department stated that employers added 339,000 new jobs in May, much higher than expected. Moreover, U.S. regional bank stocks are also moving north owing to expectations of a pause in interest rate hikes.
Investors would do well to take advantage of the rosy scenario by focusing on broker-favorite stocks like American Airlines, Bread Financial, American Axle & Manufacturing Holdings, Boise Cascade Company and Abercrombie & Fitch.
Here’s Why Broker-Advice Needs to be Followed
Brokers, irrespective of their types (sell-side, buy-side or independent), have at their disposal a lot more information on a company and its prospects than individual investors. They go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations.
As brokers often directly communicate with the top brass, they gain an in-depth understanding of what is happening in a particular company. Therefore, the question of their action being arbitrary does not arise. In fact, a rating upgrade or downgrade by brokers has the potential to influence the price of the stock.
A rating upgrade often leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade. In view of the above attributes, broker action should be relied on by individual investors, in their quest to form a winning portfolio of stocks.
Formulating a Winning Portfolio
We have designed a screener to arrive at stocks based on improving analyst recommendation and upward earnings estimate revisions over the last four weeks. However, considering only these factors does not make our strategy foolproof as the top line has not been considered.
Actually, according to many market watchers, a top-line outperformance is more creditable for a company than a mere earnings outperformance. To address top-line concerns, we have included the price/sales ratio in our screener which serves as a strong complementary valuation metric.
Here are five of the 10 stocks that made it through the screen:
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 Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 12.76% upward. American Airlines currently carries a Zacks Rank #3 (Hold).
Bread Financial, based in Columbus, OH, continues to benefit from data-driven marketing strategies. Solid receivables growth in Card Services should drive its top line. Acquisitions and divestitures will aid the company in growing inorganically and expanding its international footprint.
Over the past 60 days, the Zacks Consensus Estimate for BFH’s 2023 earnings has been revised 21.54% upward. Bread Financial currently carries a Zacks Rank #3.
American Axle’s significant strides and collaborations in the electric drive space bode well for its top- and bottom- line growth. Efforts aimed at diversifying its business, products and customer base are generating impressive results for the company.
American Axle has an impressive surprise history, with its earnings surpassing the Zacks Consensus Estimate in three of the last four quarters (missing the mark on the other occasion). AXL currently carries a Zacks Rank #3.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids through a network of approximately 850 stores across North America, Europe, Asia and the Middle East.
The company stated recently that its brands performed well in the holiday season. Abercrombie, currently sporting a Zacks Rank #1 (Strong Buy), is working toward rationalizing its store base by reducing its dependence on underperforming tourist-driven locations. The Zacks Consensus Estimate for current-year earnings has increased 32.87% over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boise Cascade Company: Based in Boise, ID, this company makes wood products and distributes building materials in the United States as well as Canada. Although BCC acknowledges that the industry will face challenges during 2023, given the current economic uncertainties and weaker near-term demand for new residential construction, it remains well-positioned to execute the growth initiatives started in 2022.
Boise Cascade, currently carrying a Zacks Rank #3, has also been increasing commodity offerings that will instill growth in the existing and underserved markets, and across its entire national footprint. The Zacks Consensus Estimate for current-year earnings has increased 5.61% over the past 60 days.
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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2105629/5-broker-favorite-stocks-for-investors-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.