This year started on a subdued note. U.S. markets have seen bouts of selling tied to shifting AI expectations and geopolitical tensions, especially Middle East risks and oil-shock fears, prompting sector rotations. Inflation worries and the Federal Reserve’s stance are also weighing on sentiment. Even so, a resilient economy and solid corporate earnings have kept investors from turning uniformly risk-off.

Against such a volatile backdrop, it is not easy for retail investors to decide which stocks to select for generating solid returns over time. One way to cut short this task is to follow brokers’ recommendations. In this regard, stocks such as Crocs, Inc. (CROX Quick QuoteCROX - Free Report) , National Energy Services Reunited Corp. (NESR Quick QuoteNESR - Free Report) and Koninklijke Philips N.V. (PHG Quick QuotePHG - Free Report) are worth investing in.

Brokers form informed views by meeting senior management, analyzing public disclosures and engaging in earnings calls. Their broad sector perspective helps place a company’s fundamentals in the context of the wider economic and competitive landscape, giving investors a clearer sense of how the stock may perform.

A broker upgrade is often driven by new information, such as revised guidance, channel checks, or updated assumptions, which feeds into a refreshed valuation model. Because some of these inputs may not yet be fully visible to the broader market, an upgrade can at times signal a potential inflection point before it is reflected in consensus expectations.

Nonetheless, an upgrade is only one input, not a complete investment case. Strong long-term returns are usually built on a broader assessment that includes business quality, valuation, industry structure, catalysts, risks and the investor’s own risk tolerance, time horizon and portfolio constraints.

Selecting the Winning Strategy

We have a screening strategy that may help you identify potential winners.

Broker Rating Upgrades (Four Weeks) of 1% or More: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the past four weeks.

Current Price Greater Than $5: The stocks must trade 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 (Strong Buy) or 2 (Buy): Despite good or bad market conditions, stocks with a Zacks Rank #1 or 2 have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.

VGM Score of 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.

3 Stocks With Upgraded Broker Ratings to Buy

Broomfield, CO-based Crocs is one of the leading footwear brands with focus on comfort and style. CROX offers a wide variety of footwear products, including sandals, wedges, flips and slides that cater to people of all ages.

Crocs’s 2026 earnings are expected to rise 7% year over year. CROX, which currently carries a Zacks Rank #2, has witnessed a 6.7% upward revision in broker ratings over the past four weeks.

National Energy Services, based in Houston, TX, provides oilfield services in the Middle East and North Africa. NESR operates through two segments: Production Services and Drilling and Evaluation Services.

NESR’s 2026 earnings are projected to jump 93.9% on a year-over-year basis. National Energy Services, carrying a Zacks Rank #2 at present, has witnessed a 12.5% upward revision in broker ratings over the past four weeks.

Based in Amsterdam, Netherlands, Koninklijke Philips is the parent company of the Philips Group. PHG operates in more than 70 countries, offering solutions in diagnostic imaging, image-guided therapy, patient monitoring, consumer health and home care.

Koninklijke Philips’ 2026 earnings are expected to rise 6.3% year over year. PHG, which currently sports a Zacks Rank #1, has witnessed an 7.7% upward revision in broker ratings over the past four weeks.