You must be thinking that investing in stocks is one of the easiest things to do. But it’s not as easy as it may seem.
For this, one has to understand the fundamentals of a company and place them against the present economic background to figure out how it may fare as an investment. One way to cut this task out is to follow broker recommendation.
Brokers have more insight into what’s happening in a particular company as they directly communicate with management. Further, they have a deeper understanding of the overall industry.
Specifically, brokers research on a company’s publicly available financial statements, listen to conference calls and engage in talks directly with top management. At times, they even talk with customers to gauge what they like or dislike about the products and services offered by the company.
So, after thorough research, brokers decide to rate that particular company’s stock. Naturally, when an analyst upgrades a stock, you can easily rely on it.
However, solely depending on analysts’ upgrades is not the right way to build your investment portfolio. You should also take into consideration other factors to ensure solid returns.
Picking the Winning Strategy
We have a screening strategy that will help in your search for potential winners:
Broker Rating Upgrades (4 weeks) of 1% ore more: The screen selects stocks that have witnessed broker rating upgrades of 1% more over the last four weeks.
Current Price greater than 5: The stocks must be trading 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: No matter whether market conditions are good or bad, 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 equal to 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.
Here are three of the four stocks that made it through the screen:
Headquartered in Wilmington, DE, The Chemours Company (CC - Free Report) provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. The company’s earnings are expected to grow at the rate of 255.4% in the current year. The stock has witnessed 16.7% upward revision in broker ratings over the past four weeks.
Haemonetics Corporation (HAE - Free Report) , headquartered in Braintree, MA, is a healthcare company, providing hematology products and solutions. The company’s current year earnings are expected to grow at the rate of 4.8%. The stock has witnessed 11.1% upward revision in broker ratings over the past four weeks.
Richmond, VA-based The Brink's Company (BCO - Free Report) offers secure transportation, cash management services, and other security-related services worldwide. The company’s earnings are expected to grow at the rate of 35.5% for the current fiscal year. The stock has witnessed 25% 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 back testing 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.
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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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