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5 Broker-Liked Stocks to Watch Amid Impressive Start to Q3 Earnings
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Key Takeaways
Q3 earnings season opens strong, led by Finance sector gains despite economic headwinds.
Broker-backed picks--PARR, CPS, BFH, AAL, CVI--stand out for rising estimates and solid fundamentals.
Screen favors stocks with improved broker views, estimate revisions and strong price/sales metrics.
The third-quarter earnings season is in its nascent stage. However, the start has been highly impressive, led by players from the Finance sector. The rosy beginning has propelled equity markets northward despite tariff-related woes and the prolonged government shutdown. Moreover, a weak labor market has raised expectations that the Fed will continue to reduce the benchmark lending rate during the rest of 2025, adding to investor enthusiasm.
Investors may aim to capitalize on this upward trend by creating a portfolio geared toward generating solid returns. However, with an overwhelming number of stocks available in the market at any given time, building a successful portfolio can be a challenging task for individual investors. One effective approach is to rely on broker recommendations, as brokers are considered industry experts with in-depth knowledge of market dynamics and intricacies. Following this route, broker-friendly stocks like Par Pacific Holdings (PARR - Free Report) , Cooper-Standard (CPS - Free Report) , Bread Financial (BFH - Free Report) , American Airlines (AAL - Free Report) and CVR Energy (CVI - Free Report) should be monitored 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 Criteria
# (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.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better, companies meeting this criteria are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
Based in Houston, Par Pacific operates an integrated energy platform spanning refining, retail, and logistics. With 219,000 barrels per day of refining capacity, extensive storage and transportation assets, and over 100 fuel and convenience store locations, the company serves key western U.S. markets.
PARR beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed on the other occasion. The company, which balances conventional fuel supply with emerging decarbonization initiatives, while also holding a significant interest in natural gas production, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Cooper-Standard’s continued progress in margin expansion underscores the effectiveness of its lean manufacturing, restructuring and cost discipline initiatives. CPS is capitalizing on the rising complexity of hybrid and battery electric vehicles, which require more advanced thermal and fluid management systems.
Cooper-Standard’s current-year earnings are expected to soar 137.8% from the year-ago actuals. CPS currently sports a Zacks Rank #1.
Bread Financial is based in Columbus, OH. The company continues to benefit from data-driven marketing strategies. Solid receivables growth in Card Services should drive its top line. Acquisitions and divestitures will aid the company in growing inorganically and expanding its international footprint.
BFH has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters, missing the mark on the other occasion. The average beat is 32%. Bread Financial currently carries a Zacks Rank #3 (Hold).
American Airlines is based in Fort Worth, TX. The gradual increase in air travel demand (particularly leisure) has been aiding AAL. Low fuel costs are driving the bottom line. American Airlines is constantly looking to add routes and broaden its network.
American Airlines is expected to report a 0.5% increase in 2025 revenues from 2024’s actuals. AAL currently carries a Zacks Rank #3.
Established in 2006, CVR Energy is a holding company primarily involved in renewable energy, petroleum refining, marketing and nitrogen fertilizer manufacturing through its stake in CVR Partners. It is committed to developing renewable biofuels and actively participating in the energy transition to reduce carbon emissions.
CVI beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed on the other occasions. The oil and gas refining and marketing company 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-Liked Stocks to Watch Amid Impressive Start to Q3 Earnings
Key Takeaways
The third-quarter earnings season is in its nascent stage. However, the start has been highly impressive, led by players from the Finance sector. The rosy beginning has propelled equity markets northward despite tariff-related woes and the prolonged government shutdown. Moreover, a weak labor market has raised expectations that the Fed will continue to reduce the benchmark lending rate during the rest of 2025, adding to investor enthusiasm.
Investors may aim to capitalize on this upward trend by creating a portfolio geared toward generating solid returns. However, with an overwhelming number of stocks available in the market at any given time, building a successful portfolio can be a challenging task for individual investors. One effective approach is to rely on broker recommendations, as brokers are considered industry experts with in-depth knowledge of market dynamics and intricacies. Following this route, broker-friendly stocks like Par Pacific Holdings (PARR - Free Report) , Cooper-Standard (CPS - Free Report) , Bread Financial (BFH - Free Report) , American Airlines (AAL - Free Report) and CVR Energy (CVI - Free Report) should be monitored 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 Criteria
# (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.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better, companies meeting this criteria are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
Based in Houston, Par Pacific operates an integrated energy platform spanning refining, retail, and logistics. With 219,000 barrels per day of refining capacity, extensive storage and transportation assets, and over 100 fuel and convenience store locations, the company serves key western U.S. markets.
PARR beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed on the other occasion. The company, which balances conventional fuel supply with emerging decarbonization initiatives, while also holding a significant interest in natural gas production, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Cooper-Standard’s continued progress in margin expansion underscores the effectiveness of its lean manufacturing, restructuring and cost discipline initiatives. CPS is capitalizing on the rising complexity of hybrid and battery electric vehicles, which require more advanced thermal and fluid management systems.
Cooper-Standard’s current-year earnings are expected to soar 137.8% from the year-ago actuals. CPS currently sports a Zacks Rank #1.
Bread Financial is based in Columbus, OH. The company continues to benefit from data-driven marketing strategies. Solid receivables growth in Card Services should drive its top line. Acquisitions and divestitures will aid the company in growing inorganically and expanding its international footprint.
BFH has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters, missing the mark on the other occasion. The average beat is 32%. Bread Financial currently carries a Zacks Rank #3 (Hold).
American Airlines is based in Fort Worth, TX. The gradual increase in air travel demand (particularly leisure) has been aiding AAL. Low fuel costs are driving the bottom line. American Airlines is constantly looking to add routes and broaden its network.
American Airlines is expected to report a 0.5% increase in 2025 revenues from 2024’s actuals. AAL currently carries a Zacks Rank #3.
Established in 2006, CVR Energy is a holding company primarily involved in renewable energy, petroleum refining, marketing and nitrogen fertilizer manufacturing through its stake in CVR Partners. It is committed to developing renewable biofuels and actively participating in the energy transition to reduce carbon emissions.
CVI beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed on the other occasions. The oil and gas refining and marketing company 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.