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New Analyst Coverage Shines Spotlight on 5 Top Stocks
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Key Takeaways
New analyst coverage spotlights WLDN, TRS, TILE, MCY, and QUAD amid rising policy risks and inflation.
Each stock shows upgraded 2025 EPS estimates and has outperformed industry peers in the past six months.
Increased coverage and better ratings suggest growing investor confidence and potential valuation upside.
In today’s environment of economic instability—marked by tariff volatility, stubborn inflation and rising policy risks—new analyst coverage has become increasingly critical. Fresh initiations provide investors with updated perspectives on company fundamentals, revised risk assessments and sector-specific insights at a time when macro signals are sending mixed messages. As earnings visibility deteriorates, independent coverage helps investors reassess valuations, strengthen defensive positioning and uncover opportunities created by market dislocations.
Recent initiations on Willdan Group, Inc. (WLDN - Free Report) , TriMas Corporation (TRS - Free Report) , Interface, Inc. (TILE - Free Report) , Mercury General Corporation (MCY - Free Report) and Quad/Graphics, Inc. (QUAD - Free Report) underscore this need for sharper market intelligence. New coverage not only provides timely financial models but also frames how companies might navigate inflationary cost structures, policy-driven volatility, and uneven demand patterns. In periods of turbulence, such analysis can catalyze renewed investor attention, driving liquidity and potentially reshaping sentiment toward under-followed 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.
Screening Criteria
The Number of Broker Ratings is greater than the Number of Broker Ratings four weeks ago (this will shortlist stocks that have recent new coverage).
Average Broker Rating less than Average Broker Rating four weeks ago (“less than” means “better than” four weeks ago).
Increased analyst coverage and improving average rating are the primary criteria of this strategy, but one should also consider other relevant parameters to make it foolproof.
Here are the other screening parameters:
Price greater than or equal to $5 (as a stock below $5 will not likely create significant interest for most investors).
Average Daily Volume greater than or equal to 100,000 shares (if the volume isn’t enough, it will not attract individual investors).
Here are five out of 67 stocks that passed the screen:
Willdan: Based in Anaheim, CA, this company provides professional, technical, and consulting services primarily in the United States. Willdan currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Willdan shares have gained 142.3% in the past six months, much above the industry’s 1.8% rise. The 2025 earnings per share (EPS) estimate has increased to $3.60 from $2.82 over the past 30 days, depicting analysts’ optimism over the company’s prospects. The estimated figure for 2025 indicates 48.2% improvement from the year-ago period. Wildan carries an impressive VGM Score of B.
TriMas: Based in Bloomfield Hills, MI, TriMas makes products for consumer, aerospace, and industrial markets. TriMas currently sports a Zacks Rank #1.
TriMas shares have gained 61.9% in the past six months, outperforming the industry’s 14.1% rise. The 2025 EPS estimate has increased to $2.03 from $1.90 over the past 30 days. The estimated figure for 2025 indicates 23% year-over-year growth on 9.8% revenue growth. TriMas also carries a VGM Score of B.
Interface: Interface, based in Atlanta, GA, designs, makes, and sells modular carpet worldwide. Interface currently flaunts a Zacks Rank #1.
Interface shares have gained 50.5% in the past six months, outperforming the industry’s 22.9% growth. The 2025 EPS estimate has moved north to $1.70 from $1.58 over the past 60 days. The estimated figure for 2025 indicates 16.4% improvement from the year-ago period.
Mercury General: Based in Los Angeles, CA, Mercury General provides personal auto insurance across the United States. The company currently sports a Zacks Rank #1.
Mercury General has gained 44.1% in the past six months, outperforming the industry’s 0.3% rise. The 2025 EPS estimate has increased to $4.50 from a loss estimate of 5 cents per share over the past 60 days. Mercury General carries an impressive VGM Score of A.
Quad/Graphics: Based in Sussex, WI, Quad/Graphics offers marketing solutions across North America and worldwide. The company currently sports a Zacks Rank #1.
Quad/Graphics has gained 22.1% in the past six months compared with the industry’s 5.6% rise. The 2025 EPS estimate has increased to 96 cents from 89 cents over the past 60 days. The estimated figure for 2025 indicates 12.9% growth from the year-ago period. Quad/Graphics 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.
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
New Analyst Coverage Shines Spotlight on 5 Top Stocks
Key Takeaways
In today’s environment of economic instability—marked by tariff volatility, stubborn inflation and rising policy risks—new analyst coverage has become increasingly critical. Fresh initiations provide investors with updated perspectives on company fundamentals, revised risk assessments and sector-specific insights at a time when macro signals are sending mixed messages. As earnings visibility deteriorates, independent coverage helps investors reassess valuations, strengthen defensive positioning and uncover opportunities created by market dislocations.
Recent initiations on Willdan Group, Inc. (WLDN - Free Report) , TriMas Corporation (TRS - Free Report) , Interface, Inc. (TILE - Free Report) , Mercury General Corporation (MCY - Free Report) and Quad/Graphics, Inc. (QUAD - Free Report) underscore this need for sharper market intelligence. New coverage not only provides timely financial models but also frames how companies might navigate inflationary cost structures, policy-driven volatility, and uneven demand patterns. In periods of turbulence, such analysis can catalyze renewed investor attention, driving liquidity and potentially reshaping sentiment toward under-followed 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.
Screening Criteria
The Number of Broker Ratings is greater than the Number of Broker Ratings four weeks ago (this will shortlist stocks that have recent new coverage).
Average Broker Rating less than Average Broker Rating four weeks ago (“less than” means “better than” four weeks ago).
Increased analyst coverage and improving average rating are the primary criteria of this strategy, but one should also consider other relevant parameters to make it foolproof.
Here are the other screening parameters:
Price greater than or equal to $5 (as a stock below $5 will not likely create significant interest for most investors).
Average Daily Volume greater than or equal to 100,000 shares (if the volume isn’t enough, it will not attract individual investors).
Here are five out of 67 stocks that passed the screen:
Willdan: Based in Anaheim, CA, this company provides professional, technical, and consulting services primarily in the United States. Willdan currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Willdan shares have gained 142.3% in the past six months, much above the industry’s 1.8% rise. The 2025 earnings per share (EPS) estimate has increased to $3.60 from $2.82 over the past 30 days, depicting analysts’ optimism over the company’s prospects. The estimated figure for 2025 indicates 48.2% improvement from the year-ago period. Wildan carries an impressive VGM Score of B.
TriMas: Based in Bloomfield Hills, MI, TriMas makes products for consumer, aerospace, and industrial markets. TriMas currently sports a Zacks Rank #1.
TriMas shares have gained 61.9% in the past six months, outperforming the industry’s 14.1% rise. The 2025 EPS estimate has increased to $2.03 from $1.90 over the past 30 days. The estimated figure for 2025 indicates 23% year-over-year growth on 9.8% revenue growth. TriMas also carries a VGM Score of B.
Interface: Interface, based in Atlanta, GA, designs, makes, and sells modular carpet worldwide. Interface currently flaunts a Zacks Rank #1.
Interface shares have gained 50.5% in the past six months, outperforming the industry’s 22.9% growth. The 2025 EPS estimate has moved north to $1.70 from $1.58 over the past 60 days. The estimated figure for 2025 indicates 16.4% improvement from the year-ago period.
Mercury General: Based in Los Angeles, CA, Mercury General provides personal auto insurance across the United States. The company currently sports a Zacks Rank #1.
Mercury General has gained 44.1% in the past six months, outperforming the industry’s 0.3% rise. The 2025 EPS estimate has increased to $4.50 from a loss estimate of 5 cents per share over the past 60 days. Mercury General carries an impressive VGM Score of A.
Quad/Graphics: Based in Sussex, WI, Quad/Graphics offers marketing solutions across North America and worldwide. The company currently sports a Zacks Rank #1.
Quad/Graphics has gained 22.1% in the past six months compared with the industry’s 5.6% rise. The 2025 EPS estimate has increased to 96 cents from 89 cents over the past 60 days. The estimated figure for 2025 indicates 12.9% growth from the year-ago period. Quad/Graphics 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.
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