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Zacks.com featured expert Kevin Matras highlights: Chef's Warehouse, Easterly Government Properties, Opus Bank, TowneBank and UGI
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For Immediate Release
Chicago, IL – December 6, 2017 - Stocks in this week’s article include: The Chef’s Warehouse (CHEF - Free Report) , Easterly Government Properties (DEA - Free Report) , Opus Bank , TowneBank (TOWN - Free Report) and UGI Corp. (UGI - Free Report) . Kevin Matras screens for companies showing their 'first' profit, and explains why they are ones to watch.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
The Power of New Analyst Coverage
Broker recommendations -– love them or hate them, they do have their place. And we all look at them eventually.
Whether you're a small individual investor or a large institutional portfolio manager (or somewhere in between), who doesn't like it when a stock gets an upgraded rating or sees a new analyst jumping in with coverage? We all do. (Although I should note that, in general, the change in the average broker recommendation is a better indicator than the actual recommendation itself.)
Anyway, today I want to talk about companies that receive new analyst coverage.
One of the things that generates analyst coverage is investor interest. How else can you explain the increased analyst coverage for Facebook (a company that's only been public for 2 1/2 yrs.) in comparison to a company like GE (public for more than 40 yrs.)?
And as new coverage is initiated, it becomes more visible, which in turn means potentially more demand (read higher prices).
This is often the case because analysts almost always initiate coverage with a positive recommendation. (Why write a research report on a company not widely followed only to say it stinks?)
And when it comes to companies with little to no analyst coverage, that one new recommendation can sometimes give portfolio managers the validation they need to build a position. (And the more money they can invest, the more they can potentially influence prices.)
The best way to use this information is to look for companies with analyst coverage that has increased over the last 4 weeks.
Simply look at the number of analyst recommendations now in comparison to the number of analyst recommendations 4 weeks ago. An increase in coverage is bullish whereas a decrease in coverage is bearish.
It's typically more bullish if the increase went from none to one or if the coverage was minimal to begin with. (Going from 25 to 26 isn't going to have the same impact because that 26th analyst isn't discovering something 'new'.) But increased coverage is better than decreased coverage –- assuming the coverage is positive of course.
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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured expert Kevin Matras highlights: Chef's Warehouse, Easterly Government Properties, Opus Bank, TowneBank and UGI
For Immediate Release
Chicago, IL – December 6, 2017 - Stocks in this week’s article include: The Chef’s Warehouse (CHEF - Free Report) , Easterly Government Properties (DEA - Free Report) , Opus Bank , TowneBank (TOWN - Free Report) and UGI Corp. (UGI - Free Report) . Kevin Matras screens for companies showing their 'first' profit, and explains why they are ones to watch.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
The Power of New Analyst Coverage
Broker recommendations -– love them or hate them, they do have their place. And we all look at them eventually.
Whether you're a small individual investor or a large institutional portfolio manager (or somewhere in between), who doesn't like it when a stock gets an upgraded rating or sees a new analyst jumping in with coverage? We all do. (Although I should note that, in general, the change in the average broker recommendation is a better indicator than the actual recommendation itself.)
Anyway, today I want to talk about companies that receive new analyst coverage.
One of the things that generates analyst coverage is investor interest. How else can you explain the increased analyst coverage for Facebook (a company that's only been public for 2 1/2 yrs.) in comparison to a company like GE (public for more than 40 yrs.)?
And as new coverage is initiated, it becomes more visible, which in turn means potentially more demand (read higher prices).
This is often the case because analysts almost always initiate coverage with a positive recommendation. (Why write a research report on a company not widely followed only to say it stinks?)
And when it comes to companies with little to no analyst coverage, that one new recommendation can sometimes give portfolio managers the validation they need to build a position. (And the more money they can invest, the more they can potentially influence prices.)
The best way to use this information is to look for companies with analyst coverage that has increased over the last 4 weeks.
Simply look at the number of analyst recommendations now in comparison to the number of analyst recommendations 4 weeks ago. An increase in coverage is bullish whereas a decrease in coverage is bearish.
It's typically more bullish if the increase went from none to one or if the coverage was minimal to begin with. (Going from 25 to 26 isn't going to have the same impact because that 26th analyst isn't discovering something 'new'.) But increased coverage is better than decreased coverage –- assuming the coverage is positive of course.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/commentary/139426/the-power-of-new-analyst-coverage
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 >>.
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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: 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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.