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5 Broker-Loved Stocks to Monitor Closely Amid Volatility
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Key Takeaways
Market volatility and tariff uncertainty shift focus to broker-recommended stocks.
BTSG, ADM, DK, DINO and AN show strong broker ratings and earnings revisions.
A screening strategy using broker ratings, earnings estimate revisions and valuation picked these stocks.
Volatility continues to characterize the broader equity market, with no clear-cut signs of a breakthrough available on the tariff front, particularly with China. The potential effects of newly implemented tariffs, still high inflation and the prevalent rate cut-related uncertainty imply that market volatility is unlikely to die down soon.
This uncertain scenario represents a huge challenge to investors in their quest to select the right stocks for achieving strong returns. One way to move forward is to follow broker advice as brokers are deemed experts in the field of investing with thorough knowledge of market nitty-gritties. Following this route, broker-friendly stocks like BrightSpring Health Services (BTSG - Free Report) , Archer Daniels Midland Company (ADM - Free Report) , Delek US Holdings (DK - Free Report) , HF Sinclair Corporation (DINO - Free Report) ) and AutoNation (AN - Free Report) are worth having a look at for healthy returns.
We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy a well-rounded one.
Screening Parameters
# (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).
% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).
Price-to-Sales = Bot%10 (The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks concerning this ratio).
Current Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).
Com/ADR/Canadian= Com (This eliminates the ADR and Canadian stocks).
Here are five of the 10 stocks that made it through the screen:
BrightSpring: The company operates as a home and community-based healthcare services platform in the United States. BrightSpring is delivering significant improvements in care quality across its diversified service portfolio, boosting stakeholders' and investors' sentiment. In Home Health, more than 80% of its branches are now rated 4 stars or higher, with the 60-day hospitalization rate continuing to decline.
BrightSpring’s 2025 expected earnings growth rate is 60.7%. The Zacks Consensus Estimate for BTSG’s 2025 revenues indicates a rise of 9.1% over 2024. The stock carries a Zacks Rank #2 (Buy) at present.
Archer Daniels: This Chicago, IL-based agricultural product company’s leadership in critical global trends, such as flexitarian diets, nutrition and sustainable materials, has contributed to its momentum. Its focus on investing in assets and technological capabilities to serve customers efficiently is likely to be a significant growth driver.
ADM has been progressing well on its three strategic pillars — optimize, drive and growth. Archer Daniels surpassed the Zacks Consensus Estimate for earnings in two of the past four quarters, missing the mark on the other two occasions. ADM currently carries a Zacks Rank #3 (Hold).
Delek US Holdings:It is an independent refiner, transporter and marketer of petroleum products. DK’s extensive downstream operations within the Permian Basin grant it a fairly significant competitive edge over its peers in the long term.
Delek US Holdings currently carries a Zacks Rank #3. DK beat the Zacks Consensus Estimate for earnings in three of the past four quarters and missed once, the average beat being 15.1%.
HF Sinclair: It is a producer and marketer of gasoline, diesel fuel, and other specialty products. HF Sinclair pays out a quarterly dividend of 50 cents ($2 annualized) per share, which gives it a 4.44% yield at the current stock price. This #3 Ranked company’s five-year dividend growth rate is 9.12%.
DINO is currently valued at $8.49 billion. The Zacks Consensus Estimate for HF Sinclair’s 2025 earnings has been revised 17.2% upward over the past 60 days. The downstream operator has a trailing four-quarter earnings surprise of 26.6%, on average.
AutoNation:Itis one of the largest automotive retailers in the nation, backed by a wide geographical footprint and a growing dealer network. Its ongoing store expansion strategy is helping AutoNation reach a broader customer base across key markets. Strategic acquisitions continue to fuel growth, including the recent purchase of two dealerships in the Greater Denver area.
AutoNation is also leaning into digital transformation with its AutoNation Express platform, which streamlines online vehicle buying and selling. AN surpassed the Zacks Consensus Estimate for earnings in three of the past four quarters, missing the mark on the other occasion. AN currently carries a Zacks Rank #3.
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 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.
Image: Bigstock
5 Broker-Loved Stocks to Monitor Closely Amid Volatility
Key Takeaways
Volatility continues to characterize the broader equity market, with no clear-cut signs of a breakthrough available on the tariff front, particularly with China. The potential effects of newly implemented tariffs, still high inflation and the prevalent rate cut-related uncertainty imply that market volatility is unlikely to die down soon.
This uncertain scenario represents a huge challenge to investors in their quest to select the right stocks for achieving strong returns. One way to move forward is to follow broker advice as brokers are deemed experts in the field of investing with thorough knowledge of market nitty-gritties. Following this route, broker-friendly stocks like BrightSpring Health Services (BTSG - Free Report) , Archer Daniels Midland Company (ADM - Free Report) , Delek US Holdings (DK - Free Report) , HF Sinclair Corporation (DINO - Free Report) ) and AutoNation (AN - Free Report) are worth having a look at for healthy returns.
We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy a well-rounded one.
Screening Parameters
# (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).
% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).
Price-to-Sales = Bot%10 (The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks concerning this ratio).
Current Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).
Com/ADR/Canadian= Com (This eliminates the ADR and Canadian stocks).
Here are five of the 10 stocks that made it through the screen:
BrightSpring: The company operates as a home and community-based healthcare services platform in the United States. BrightSpring is delivering significant improvements in care quality across its diversified service portfolio, boosting stakeholders' and investors' sentiment. In Home Health, more than 80% of its branches are now rated 4 stars or higher, with the 60-day hospitalization rate continuing to decline.
BrightSpring’s 2025 expected earnings growth rate is 60.7%. The Zacks Consensus Estimate for BTSG’s 2025 revenues indicates a rise of 9.1% over 2024. The stock carries a Zacks Rank #2 (Buy) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Archer Daniels: This Chicago, IL-based agricultural product company’s leadership in critical global trends, such as flexitarian diets, nutrition and sustainable materials, has contributed to its momentum. Its focus on investing in assets and technological capabilities to serve customers efficiently is likely to be a significant growth driver.
ADM has been progressing well on its three strategic pillars — optimize, drive and growth. Archer Daniels surpassed the Zacks Consensus Estimate for earnings in two of the past four quarters, missing the mark on the other two occasions. ADM currently carries a Zacks Rank #3 (Hold).
Delek US Holdings:It is an independent refiner, transporter and marketer of petroleum products. DK’s extensive downstream operations within the Permian Basin grant it a fairly significant competitive edge over its peers in the long term.
Delek US Holdings currently carries a Zacks Rank #3. DK beat the Zacks Consensus Estimate for earnings in three of the past four quarters and missed once, the average beat being 15.1%.
HF Sinclair: It is a producer and marketer of gasoline, diesel fuel, and other specialty products. HF Sinclair pays out a quarterly dividend of 50 cents ($2 annualized) per share, which gives it a 4.44% yield at the current stock price. This #3 Ranked company’s five-year dividend growth rate is 9.12%.
DINO is currently valued at $8.49 billion. The Zacks Consensus Estimate for HF Sinclair’s 2025 earnings has been revised 17.2% upward over the past 60 days. The downstream operator has a trailing four-quarter earnings surprise of 26.6%, on average.
AutoNation:Itis one of the largest automotive retailers in the nation, backed by a wide geographical footprint and a growing dealer network. Its ongoing store expansion strategy is helping AutoNation reach a broader customer base across key markets. Strategic acquisitions continue to fuel growth, including the recent purchase of two dealerships in the Greater Denver area.
AutoNation is also leaning into digital transformation with its AutoNation Express platform, which streamlines online vehicle buying and selling. AN surpassed the Zacks Consensus Estimate for earnings in three of the past four quarters, missing the mark on the other occasion. AN currently carries a Zacks Rank #3.
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 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 to 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.