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3 Stocks to Buy Following Recent Broker Rating Upgrades

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Key Takeaways

  • BJRI, PTEN and BTSG cleared a screen requiring broker rating upgrades of at least 1% in four weeks.
  • Broker ratings rose 8.3% for BJRI, 6.7% for PTEN and 5.3% for BTSG over the past four weeks.
  • Projected 2026 earnings growth is 4% for BJRI, 69.2% for PTEN and 78% for BTSG year over year.

Second-quarter 2026 earnings have been strong overall, marked by widespread beats and accelerating growth. However, investment decisions should not rest solely on near-term results. Investors should also consider the broader macroeconomic backdrop and assess how prevailing trends could influence a company’s fundamentals and long-term growth prospects.

One way to cut short this task is to follow brokers’ recommendations. Stocks like BJ's Restaurants, Inc. (BJRI - Free Report) , Patterson-UTI Energy, Inc. (PTEN - Free Report) and BrightSpring Health Services, Inc. (BTSG - Free Report) are worth considering.

Broker recommendations generally stem from a research process that includes interactions with company management, close examination of regulatory filings, earnings-call analysis, channel checks and industry research. This approach allows analysts to assess a company’s fundamentals within the context of macroeconomic conditions, sector trends, competitive standing and peer performance instead of viewing the business in isolation.

A broker upgrade usually indicates a notable improvement in an analyst’s view of a company. Such a revision may reflect developments that are not yet fully captured in consensus estimates or the stock’s current valuation. As a result, an upgrade can point to a possible turning point in earnings expectations and broader investor sentiment.

Still, broker upgrades should not be treated as stand-alone investment signals. They are most useful when evaluated alongside other fundamental, earnings and valuation metrics. Therefore, broker recommendations should form part of a broader, balanced and disciplined investment decision-making framework.

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

Orange County, CA-based BJ's Restaurants owns and operates a chain of high-end casual dining restaurants in the United States. The restaurants operate as BJ’s Restaurant & Brewery, BJ’s Restaurant & Brewhouse, BJ’s Pizza & Grill and BJ’s Grill. 

BJRI’s 2026 earnings are expected to rise 4% year over year. BJ's Restaurants, which currently sports a Zacks Rank #1, has witnessed an 8.3% upward revision in broker ratings over the past four weeks.

Patterson-UTI Energy, based in Houston, TX, is an oilfield services company. PTEN is one of the largest onshore contract drillers in the United States and has a large fleet of pressure pumping equipment. 

Patterson-UTI Energy’s 2026 earnings are projected to surge 69.2% on a year-over-year basis. PTEN, carrying a Zacks Rank #2 at present, has seen a 6.7% increase in broker ratings over the past four weeks.

Headquartered in Louisville, KY, BrightSpring Health Services is a national home and community-based healthcare services platform integrating pharmacy and provider care for medically complex patients across Medicare, Medicaid and commercial payors. BTSG serves all 50 states and focuses on seniors and specialty populations in lower-cost home and community settings.

BTSG’s 2026 earnings are expected to soar 78% year over year. BrightSpring Health Services, which currently sports a Zacks Rank #1, has witnessed a 5.3% upward revision in broker ratings over the past four weeks.

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