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3 Stocks With Upgraded Broker Ratings to Navigate Market Uncertainties

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Stock markets have been experiencing significant volatility of late. This is largely because of the ongoing tariff war, which has also led to expectations of economic slowdown and rising inflation. Because of these concerns, the Federal Reserve kept interest rates unchanged at 4.25-4.5% at last week’s FOMC meeting. In such an uncertain environment, retail investors face significant challenges in selecting the right stocks and achieving strong returns.

One way to cut short this task is to follow brokers’ recommendations. In this regard, stocks like Walt Disney Company (DIS - Free Report) , Cognizant Technology (CTSH - Free Report) and Expand Energy Corporation (EXE - Free Report) are worth buying.

As brokers directly communicate with top management, they have more insight into what is happening in a particular company. They assess a company’s publicly available documents and even attend conference calls. Brokers have more understanding of the overall sector and industry. They place company fundamentals against the current economic backdrop to determine how a particular stock will fare as an investment.

When brokers upgrade a stock, one can easily rely on their judgment. Yet, depending on broker upgrades is not enough to build your investment portfolio. A few other factors should be taken into account to ensure steady returns.

Selecting the Winning Strategy

We have a screening strategy that will help in your search for potential winners:

Broker Rating Upgrades (Four Weeks) of 1% or More: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the last four weeks.

Current Price Greater Than $5: The stocks must trade above $5.

Average 20-Day Volume Greater Than 100,000: A large trading volume guarantees that the stock is easily tradable.

Zacks Rank Equal to #1 or 2: Despite good or bad market conditions, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.

VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

3 Stocks With Upgraded Broker Ratings

Burbank, CA-based Walt Disney has assets that span movies, television shows and theme parks. DIS operates through three segments: Entertainment, Sports and Experiences. 

Walt Disney’s fiscal 2025 earnings are expected to rise 13.3% year over year. DIS, which currently carries a Zacks Rank #2, has witnessed a 3.5% upward revision in broker ratings over the past four weeks. 

Headquartered in Teaneck, NJ, Cognizant is a leading professional services company. CTSH’s services include digital services and solutions, consulting, application development, systems integration, application testing, application maintenance, infrastructure services and business process services.

CTSH’s 2025 earnings are projected to grow 6.5% on a year-over-year basis. Cognizant, carrying a Zacks Rank #2 at present, has witnessed a 4.4% upward revision in broker ratings over the past four weeks.

Based in Santa Clara, CA, Expand Energy is a leading U.S.-based natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. The all-stock merger, completed on Oct. 1, 2024, positioned EXE as the largest natural gas producer in the country, leveraging a vast asset base across the prolific Haynesville and Appalachian shale plays.

Expand Energy’s 2025 earnings are expected to soar 444.7% year over year. EXE, presently carrying a Zacks Rank #2, has witnessed a 7.7% upward revision in broker ratings over the past four weeks.

Get the remaining stock on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software. 

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 of the Research Wizard today.

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.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at:
https://www.zacks.com/performance

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