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3 Stocks to Invest in as Broker Rating Upgrades Signal Upside

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Key Takeaways

  • A ratings-upgrade screen highlights 3 stocks after notable broker recommendation bumps in four weeks.
  • TNDM sells Mobi and t:slim X2 pumps with Control-IQ; 2026 earnings are expected to soar 73.3%.
  • DELL sees fiscal 2027 earnings up 41.2%, while CNO Financial expects 2026 earnings growth of 9.3%.

U.S. equities have shown resilience year to date, though gains have been highly uneven. After recovering from early volatility, markets have moved higher as strong corporate earnings, AI-driven optimism and a still-supportive economy have helped offset broader macro concerns. Investor sentiment has continued to shift with changing Fed-rate expectations, swings in Treasury yields, oil-price volatility, geopolitical risks (particularly Middle East tensions) and evolving tariff policies.

As such, it is difficult for retail investors to select stocks for generating solid returns over time. One way to cut short this task is to follow brokers’ recommendations. In this regard, stocks such as Tandem Diabetes Care, Inc. (TNDM - Free Report) , Dell Technologies Inc. (DELL - Free Report) and CNO Financial Group (CNO - Free Report) are worth considering.

Broker opinions are shaped by a broad research framework that combines direct management access, detailed analysis of public disclosures, earnings-call participation and sector-level intelligence. This enables brokers to evaluate a company’s fundamentals not in isolation, but in the context of macroeconomic trends, industry conditions, competitive positioning and peer performance. 

A broker upgrade typically signals a meaningful improvement in an analyst’s expectations. This change may be driven by stronger guidance, favorable channel checks, improving demand trends, margin recovery, better execution or revised operating assumptions. When such positives are not yet fully reflected in consensus estimates or market pricing, an upgrade may indicate a potential inflection point in earnings momentum or valuation sentiment.

That said, a broker upgrade should not be viewed in isolation. It is best used as one input within a broader decision-making process. Sustainable long-term returns depend on several factors, including business quality, valuation, industry structure, competitive advantages, growth catalysts, execution risks and an investor’s own risk appetite, time horizon and portfolio objectives.

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 Bet On

San Diego-based Tandem designs, develops and markets products for people with insulin-dependent diabetes. TNDM’s pump portfolio features the Tandem Mobi and t:slim X2, both of which feature Control-IQ advanced hybrid closed-loop technology. 

Tandem’s 2026 earnings are expected to soar 73.3% year over year. TNDM, which currently carries a Zacks Rank #2, has witnessed a 4.2% upward revision in broker ratings over the past four weeks.

Dell, based in Round Rock, TX, is a leading provider of servers, storage and PCs. DELL offers secure, integrated solutions that extend from the edge to the core to the cloud.   

DELL’s fiscal 2027 earnings are projected to jump 41.2% on a year-over-year basis. Dell, sporting a Zacks Rank #1 at present, has witnessed a 8% upward revision in broker ratings over the past four weeks.

Based in Carmel, IN, CNO Financial is a top-tier holding company for a group of insurance companies operating throughout the United States. CNO develops, administers and markets annuity, supplemental health and individual life insurance and other insurance products.

CNO Financial’s 2026 earnings are expected to rise 9.3% year over year. CNO, which currently carries a Zacks Rank #2, has witnessed a 14.3% upward revision in broker ratings over the past four weeks.

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