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Buy These 4 Stocks as Analysts Spot Strength in Volatile Times
In today’s uncertain economic climate, new analyst coverage has become increasingly valuable for investors navigating volatility. With the Federal Reserve maintaining interest rates and signaling two possible cuts later in 2025, concerns about stagflation are rising, especially as GDP growth slows to 1.4% and inflation climbs to 3%, partly due to shifting tariff policies under President Trump.
Against this backdrop, new analyst coverage does more than spotlight stocks. It provides timely insights, updated models, and context on how companies might fare amid inflationary pressures, cost volatility, and weakening demand. Recent initiations on Karooooo Ltd., OppFi Inc., QXO, Inc. and United Fire Group, Inc. reflect this growing need for sharper analysis, potentially boosting investor interest in these names.
Why New Analyst Coverage Holds Weight
Analysts typically possess specialized knowledge and expertise in particular industries or sectors. Through thorough research and analysis, they offer investors critical insights into a company's financial health, growth potential, competitive standing, and industry trends — insights that are often difficult for individual investors to acquire independently.
Coverage initiation on a stock by analyst(s) usually portrays a 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 holds some value.
Do analysts create value for companies by initiating coverage? Of course, they do because they play an important intermediary role with their extensive access to relevant data. Many investors have immense faith in analysts’ research as they fear that a lack of information might trigger inefficiencies.
Obviously, stocks are not randomly chosen to cover. A 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 like 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.
Needless to say, the average change in broker recommendation is preferable to a single recommendation change. Again, if an analyst issues a new recommendation on a company that has very little or no existing coverage, investors start paying more attention to it. Also, any further information attracts portfolio managers to build a position in the stock.
Stock Price Movements and Market Impact
New analyst coverage often leads to immediate stock price volatility. A positive rating can attract bullish sentiment and drive share prices higher, while neutral or negative ratings may trigger sell-offs. When multiple analysts initiate favorable coverage, the resulting investor confidence can lead to sustained upward momentum in valuation. Conversely, if coverage highlights overlook risks, investor enthusiasm may be dampened, and long-term performance can be hindered.
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 four out of seven stocks that passed the screen:
Karooooo: Karooooo, headquartered in Singapore, offers a mobility SaaS platform for connected vehicles across South Africa, other parts of Africa, Europe, Asia-Pacific, the Middle East, and the United States. Karooooo currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Karooooo shares have gained 36.4% in the past three months, below the industry’s 41.4% rise. Nonetheless, the fiscal 2026 earnings per share (EPS) estimate has increased to $1.87 from $1.82 over the past 30 days, depicting analysts’ optimism over the company’s prospects. The estimated figure for fiscal 2026 indicates 14.7% year-over-year growth.
OppFi: Headquartered in Chicago, IL, this tech-driven digital finance platform offers a range of financial products and services to banks across the United States. OppFi currently sports a Zacks Rank #1.
OppFi shares have gained 73.2% in the past three months, outperforming the industry’s 16.2% rise. The 2025 EPS estimate has increased to $1.23 from $1.07 over the past 60 days. The estimated figure for 2025 indicates 29.5% year-over-year growth. Again, OppFi carries an impressive VGM Score of A.
QXO: Based in Greenwich, CT, QXO distributes roofing, waterproofing, and building products across the United States. QXO currently carries a Zacks Rank #2 (Buy).
QXO shares have gained 78% in the past three months, outperforming the industry’s 42.6% growth. The 2025 EPS estimate has increased to 39 cents against a loss per share of 12 cents over the past 30 days. The estimated figure for 2025 indicates improvement from the year-ago reported loss per share of 10 cents.
United Fire Group: Based in Cedar Rapids, IA, United Fire Group offers property and casualty insurance to individuals and businesses across the United States. The company currently carries a Zacks Rank #2.
United Fire Group has gained 9.4% in the past three months, outperforming the industry’s 0.1% decline. The 2025 EPS estimate has increased to $3.50 from $2.42 over the past 60 days. The estimated figure for 2025 indicates a 2.4% year-over-year decline. Yet, UFCS carries an impressive VGM Score of A.
You can get the remaining 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 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.
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/performance for 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:
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Zacks.com featured highlights Karooooo, OppFi, QXO and United Fire
For Immediate Release
Chicago, IL – July 8, 2025 – The stocks in this week’s article are Karooooo Ltd. (KARO - Free Report) , OppFi Inc. (OPFI - Free Report) , QXO, Inc. (QXO - Free Report) and United Fire Group, Inc. (UFCS - Free Report) .
Buy These 4 Stocks as Analysts Spot Strength in Volatile Times
In today’s uncertain economic climate, new analyst coverage has become increasingly valuable for investors navigating volatility. With the Federal Reserve maintaining interest rates and signaling two possible cuts later in 2025, concerns about stagflation are rising, especially as GDP growth slows to 1.4% and inflation climbs to 3%, partly due to shifting tariff policies under President Trump.
Against this backdrop, new analyst coverage does more than spotlight stocks. It provides timely insights, updated models, and context on how companies might fare amid inflationary pressures, cost volatility, and weakening demand. Recent initiations on Karooooo Ltd., OppFi Inc., QXO, Inc. and United Fire Group, Inc. reflect this growing need for sharper analysis, potentially boosting investor interest in these names.
Why New Analyst Coverage Holds Weight
Analysts typically possess specialized knowledge and expertise in particular industries or sectors. Through thorough research and analysis, they offer investors critical insights into a company's financial health, growth potential, competitive standing, and industry trends — insights that are often difficult for individual investors to acquire independently.
Coverage initiation on a stock by analyst(s) usually portrays a 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 holds some value.
Do analysts create value for companies by initiating coverage? Of course, they do because they play an important intermediary role with their extensive access to relevant data. Many investors have immense faith in analysts’ research as they fear that a lack of information might trigger inefficiencies.
Obviously, stocks are not randomly chosen to cover. A 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 like 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.
Needless to say, the average change in broker recommendation is preferable to a single recommendation change. Again, if an analyst issues a new recommendation on a company that has very little or no existing coverage, investors start paying more attention to it. Also, any further information attracts portfolio managers to build a position in the stock.
Stock Price Movements and Market Impact
New analyst coverage often leads to immediate stock price volatility. A positive rating can attract bullish sentiment and drive share prices higher, while neutral or negative ratings may trigger sell-offs. When multiple analysts initiate favorable coverage, the resulting investor confidence can lead to sustained upward momentum in valuation. Conversely, if coverage highlights overlook risks, investor enthusiasm may be dampened, and long-term performance can be hindered.
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 four out of seven stocks that passed the screen:
Karooooo: Karooooo, headquartered in Singapore, offers a mobility SaaS platform for connected vehicles across South Africa, other parts of Africa, Europe, Asia-Pacific, the Middle East, and the United States. Karooooo currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Karooooo shares have gained 36.4% in the past three months, below the industry’s 41.4% rise. Nonetheless, the fiscal 2026 earnings per share (EPS) estimate has increased to $1.87 from $1.82 over the past 30 days, depicting analysts’ optimism over the company’s prospects. The estimated figure for fiscal 2026 indicates 14.7% year-over-year growth.
OppFi: Headquartered in Chicago, IL, this tech-driven digital finance platform offers a range of financial products and services to banks across the United States. OppFi currently sports a Zacks Rank #1.
OppFi shares have gained 73.2% in the past three months, outperforming the industry’s 16.2% rise. The 2025 EPS estimate has increased to $1.23 from $1.07 over the past 60 days. The estimated figure for 2025 indicates 29.5% year-over-year growth. Again, OppFi carries an impressive VGM Score of A.
QXO: Based in Greenwich, CT, QXO distributes roofing, waterproofing, and building products across the United States. QXO currently carries a Zacks Rank #2 (Buy).
QXO shares have gained 78% in the past three months, outperforming the industry’s 42.6% growth. The 2025 EPS estimate has increased to 39 cents against a loss per share of 12 cents over the past 30 days. The estimated figure for 2025 indicates improvement from the year-ago reported loss per share of 10 cents.
United Fire Group: Based in Cedar Rapids, IA, United Fire Group offers property and casualty insurance to individuals and businesses across the United States. The company currently carries a Zacks Rank #2.
United Fire Group has gained 9.4% in the past three months, outperforming the industry’s 0.1% decline. The 2025 EPS estimate has increased to $3.50 from $2.42 over the past 60 days. The estimated figure for 2025 indicates a 2.4% year-over-year decline. Yet, UFCS carries an impressive VGM Score of A.
You can get the remaining 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 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.
Click here to sign up for a free trial of 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/2566096/buy-these-4-stocks-as-analysts-spot-strength-in-volatile-times
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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.
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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/performance for information about the performance numbers displayed in this press release.