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Zacks.com featured highlights Limbach, EZCORP and Laureate Education

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Chicago, IL – December 4, 2024 – Stocks in this week’s article are Limbach Holdings, Inc. (LMB - Free Report) , EZCORP, Inc. (EZPW - Free Report) and Laureate Education, Inc. (LAUR - Free Report) .

3 Buy-Worthy Stocks on New Analyst Coverage

In the world of investing, only a few events can spark as much market excitement as new analyst coverage. Whether it’s a small-cap stock gaining visibility or a well-known name receiving a fresh perspective, analyst reports have the power to shift sentiment, boost liquidity, and validate an investor’s thesis. But why does new coverage matter, and how can you use it to your advantage?

For perceptive investors, recognizing the impact of new analyst attention can reveal opportunities to profit from price fluctuations or harness long-term growth potential. Let’s dive deeper into why this market development deserves your focus.

Limbach Holdings, Inc., EZCORP, Inc. and Laureate Education, Inc. are three stocks that have witnessed new analyst coverage lately. These are, therefore, expected to attract investor attention.

Why Analyst Coverage Commands Attention

When analysts at leading firms initiate coverage on a stock, they bring with them a network of institutional clients and comprehensive financial analysis. They are often experts in specific industries or sectors, leveraging their specialized knowledge to conduct in-depth research and analysis. Analysts provide investors with crucial insights into a company’s financial performance, growth prospects, competitive position, and industry dynamics—information that can be challenging for individual investors to obtain on their own.

Do analysts add value to companies by initiating coverage? Absolutely. Their role as intermediaries grants them access to a wealth of relevant data, which they refine into actionable insights. Many investors rely heavily on analysts’ research, recognizing that a lack of information could lead to market inefficiencies.

Stocks selected for coverage are not chosen arbitrarily. New coverage generally reflects the analyst’s confidence in the company’s prospects. Sometimes, heightened investor interest in a particular stock prompts analysts to focus on it, aligning their efforts with market demand. Consequently, ratings for newly covered stocks often tend to be more favorable compared to those of stocks that are already under continuous coverage.

Furthermore, a shift in the average broker recommendation holds more significance than an isolated recommendation change. When an analyst issues a recommendation for a company with minimal or no existing coverage, it often captures investors' attention. This, in turn, can attract portfolio managers to take positions in the stock, as additional information surfaces.

How Analyst Coverage Impacts Stock Performance

Analyst coverage can significantly impact stock performance by triggering various market reactions. The announcement of new coverage can cause immediate fluctuations in stock price. Positive ratings can attract bullish investors, while neutral or negative ratings may spark sell-offs. Meanwhile, consistent, positive coverage from multiple analysts can contribute to sustained investor confidence, potentially leading to higher valuations. Conversely, if the coverage reveals previously unrecognized risks, it can hinder long-term performance.

Overall, new analyst coverage can act as a spotlight, illuminating stocks that might otherwise go unnoticed. Whether you’re discovering a hidden gem or gaining a fresh perspective on a well-known company, these reports can be a powerful addition to your investment toolkit.

Are there newly covered stocks on your radar? Now might be the perfect time to dig deeper and uncover your next winning investment.

So, it’s a good strategy to bet on stocks that have seen increased analyst coverage over the last few weeks.

Here are three out of the six stocks that passed the screen:

Limbach: This Warrendale, PA-based company operates as a building systems solution provider. The company currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

This leader in mechanical and electrical engineering services recently attracted new analyst coverage thanks to its stellar 125.9% year-to-date (YTD) performance. LMB shares have outperformed the industry’s 18.9% rise. EPS estimates for LMB have moved north to $2.54 (from $2.43) for 2024 and to $3.02 (from $2.81) for 2025 in the past 30 days. The estimated figures indicate 44.3% and 19.1% growth for 2024 and 2025, respectively, from a year ago.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

EZCORP: Based in Austin, TX, this company provides pawn services in the United States and Latin America. The company currently carries a Zacks Rank #2 (Buy).

EZPW shares have gained 44.7% YTD compared with the industry’s 43.7% rise. EPS estimates for EZPW have moved north to $1.25 (from $1.23) for fiscal 2025 in the past 30 days. The estimated figures indicate 11.6% growth for fiscal 2025 from a year ago. It has a VGM Score of A.

Laureate Education: Based in Miami, FL, this company is a degree-granting higher education provider. Laureate Education currently carries a Zacks Rank #2.

LAUR shares have gained 37.3% YTD, outperforming the industry’s 4.5% rise. EPS estimates for LAUR have moved north to $1.42 (from $1.41) for 2024 and to $1.44 (from $1.43) for 2025 in the past 30 days. The estimated figures indicate 91.9% growth for 2024 and 1.4% for 2025 from a year ago. It has a VGM Score of A.

You can get the remaining stock on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your trading. Further, you can also create your 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.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2378509/3-buy-worthy-stocks-on-new-analyst-coverage

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/

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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.


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EZCORP, Inc. (EZPW) - free report >>

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