We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Analyst Coverage Sparks Interest in These 4 Stocks
In the current backdrop of heightened economic uncertainty—marked by tariff volatility, inflationary pressure, and growing concerns over policy interference—new analyst coverage plays a crucial role in guiding investors through volatility. Fresh coverage often brings updated insights into company fundamentals, risk exposures, and sector resilience, particularly valuable as macro signals grow more conflicting. As corporate earnings become harder to predict, timely and independent coverage becomes essential to help investors reassess valuations, capitalize on dislocations, and identify defensive or opportunistic plays.
New analyst coverage provides timely insights, updated models, and context on how companies might fare amid inflationary pressures, cost volatility, and weakening demand. Recent initiations on KALA BIO, Inc., Graham Corp., Arq, Inc. and Hawkins, 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 six stocks that passed the screen:
KALA BIO shares have gained 96.1% in the past three months, much above the industry's 6.7% rise. The 2025 loss per share estimate has narrowed to $5.25 from $5.66 over the past 30 days, depicting analysts' optimism over the company's prospects. The estimated figure for 2025 indicates improvement from the year-ago reported loss of $10.15 per share.
Graham: Based in Batavia, NY, Graham designs fluid, power, heat transfer, and vacuum systems for industries including chemical processing, defense, space, and energy. Graham currently carries a Zacks Rank #3 (Hold).
Graham shares have gained 75.2% in the past three months, outperforming the industry's 16.8% rise. The fiscal 2026 EPS estimate has increased to $1.23 from $1.18 over the past 60 days. The estimated figure for fiscal 2026 indicates a 0.8% year-over-year decline on 9.7% revenue growth.
Arq: Headquartered in Greenwood Village, CO, Arq is an environmental technology company. Arq currently carries a Zacks Rank #3.
Arq shares have gained 57% in the past three months, outperforming the industry's 1.9% growth. The 2025 EPS estimate has remained unchanged at 6 cents per share over the past 30 days. The estimated figure for 2025 indicates quite an improvement from the year-ago reported loss per share of 14 cents.
Hawkins: Headquartered in Roseville, MN, this company operates as a water treatment and specialty ingredients company. The company currently carries a Zacks Rank #3.
Hawkins has gained 25.6% in the past three months, outperforming the industry's 7.5% rise. The 2025 EPS estimate has remained unchanged at $4.37 over the past 60 days. The estimated figure for 2025 indicates an 8.4% year-over-year decline. Yet, Hawkins carries an impressive VGM Score of B.
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.
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 KALA, Graham, Arq and Hawkins
For Immediate Release
Chicago, IL – July 28, 2025 – Stocks in this week’s article are KALA BIO, Inc. (KALA - Free Report) , Graham Corp. (GHM - Free Report) , Arq, Inc. (ARQ - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
Analyst Coverage Sparks Interest in These 4 Stocks
In the current backdrop of heightened economic uncertainty—marked by tariff volatility, inflationary pressure, and growing concerns over policy interference—new analyst coverage plays a crucial role in guiding investors through volatility. Fresh coverage often brings updated insights into company fundamentals, risk exposures, and sector resilience, particularly valuable as macro signals grow more conflicting. As corporate earnings become harder to predict, timely and independent coverage becomes essential to help investors reassess valuations, capitalize on dislocations, and identify defensive or opportunistic plays.
New analyst coverage provides timely insights, updated models, and context on how companies might fare amid inflationary pressures, cost volatility, and weakening demand. Recent initiations on KALA BIO, Inc., Graham Corp., Arq, Inc. and Hawkins, 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 six stocks that passed the screen:
KALA BIO: Based in Arlington, MA, this is a clinical-stage biopharmaceutical company. KALA BIO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
KALA BIO shares have gained 96.1% in the past three months, much above the industry's 6.7% rise. The 2025 loss per share estimate has narrowed to $5.25 from $5.66 over the past 30 days, depicting analysts' optimism over the company's prospects. The estimated figure for 2025 indicates improvement from the year-ago reported loss of $10.15 per share.
Graham: Based in Batavia, NY, Graham designs fluid, power, heat transfer, and vacuum systems for industries including chemical processing, defense, space, and energy. Graham currently carries a Zacks Rank #3 (Hold).
Graham shares have gained 75.2% in the past three months, outperforming the industry's 16.8% rise. The fiscal 2026 EPS estimate has increased to $1.23 from $1.18 over the past 60 days. The estimated figure for fiscal 2026 indicates a 0.8% year-over-year decline on 9.7% revenue growth.
Arq: Headquartered in Greenwood Village, CO, Arq is an environmental technology company. Arq currently carries a Zacks Rank #3.
Arq shares have gained 57% in the past three months, outperforming the industry's 1.9% growth. The 2025 EPS estimate has remained unchanged at 6 cents per share over the past 30 days. The estimated figure for 2025 indicates quite an improvement from the year-ago reported loss per share of 14 cents.
Hawkins: Headquartered in Roseville, MN, this company operates as a water treatment and specialty ingredients company. The company currently carries a Zacks Rank #3.
Hawkins has gained 25.6% in the past three months, outperforming the industry's 7.5% rise. The 2025 EPS estimate has remained unchanged at $4.37 over the past 60 days. The estimated figure for 2025 indicates an 8.4% year-over-year decline. Yet, Hawkins carries an impressive VGM Score of B.
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/2617885/analyst-coverage-sparks-interest-in-these-4-stocks-amid-volatility
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.