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5 Stocks Liked by Brokers Amid the Prevalent Uncertain Scenario

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Key Takeaways

  • Cracker Barrel, Best Buy, Beazer Homes, Cleveland-Cliffs and Bath & Body Works are broker-favored picks.
  • The stock screen prioritizes broker upgrades, positive earnings revisions and a low price-to-sales ratio.
  • All five stocks have an impressive earnings surprise history in the last four quarters.

Uncertainty and fears continue to dominate the stock market as oil prices remain high due to Middle East tensions. The still-elevated inflation reading and uncertainty regarding the Federal Reserve's ‌next policy decision continue to dent U.S. markets. Amid this uncertainty, the focus now shifts to third-quarter earnings reports due this week.  

The uncertain environment has made it increasingly difficult for individual investors to construct a stock portfolio that consistently delivers strong performance. Choosing the wrong stocks can hurt returns and compromise the objective of growing hard-earned savings in an inherently unpredictable market.

So, how should investors navigate these conditions? One strategy is to follow broker recommendations and monitor broker-favored stocks such as Cracker Barrel (CBRL - Free Report) , Best Buy (BBY - Free Report) , Beazer Homes USA (BZH - Free Report) , Cleveland-Cliffs (CLF - Free Report) and Bath & Body Works (BBWI - Free Report) .

Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. Naturally, their estimate revisions serve as an important pointer regarding the price of a stock. Given this extensive know-how, brokers are deemed to be experts, equipped with thorough knowledge and a clear insight into the nitty-gritty of the investment world. Paying heed to such well-researched information is, therefore, advisable for investors.

Screening Parameters    

# (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).

Price-to-Sales = Bot%10 (The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks concerning this ratio).

Current Price greater than 5 (as 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 in terms of market capitalization).

Com/ADR/Canadian= Com (This eliminates the ADR and Canadian stocks).

Here are five of the 10 stocks that made it through the screen:

Cracker Barrel benefits from menu upgrades, loyalty engagement, operational discipline and retail stabilization. Cracker Barrel materially reduced total debt during fiscal 2026, strengthening its financial flexibility despite modest declines in cash and operating cash flow. Total debt fell to $337.2 million as of July 31, 2026, from $484.6 million at fiscal 2025-end after the company repaid $150 million of maturing convertible notes and deployed approximately $77 million of sale-leaseback proceeds toward debt reduction.

 The company, currently sporting a Zacks Rank #1 (Strong Buy), has outshone the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 228.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Best Buy is benefiting from innovation-led demand across computing, mobile, home theater and emerging technology categories, while Marketplace and Best Buy Ads are expanding higher-margin profit streams. Investments in smaller stores, digital commerce, AI shopping tools and membership should broaden customer reach and deepen engagement.

 Best Buy is expanding digital discovery and loyalty tools to deepen customer relationships across its ecosystem. The company, currently carrying a Zacks Rank #2 (Buy), has outshone the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 6.1%.

Beazer Homes, currently carrying a Zacks Rank #3 (Hold), is headquartered in Atlanta, GA. It is a leading national homebuilder in energy-efficient construction.

Beazer Homes surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters and missed the mark once, with the average beat being 29.9%. The Zacks Consensus Estimate for current-quarter revenues of this construction company has increased 5.2% year over year.

Cleveland-Cliffs is benefiting from firmer domestic steel pricing, recovering automotive demand and better utilization across its finishing assets. The company’s vertically integrated footprint and broad product mix support its position in value-added steel, while the Stelco acquisition adds exposure to an improving Canadian hot-rolled market.

Cleveland-Cliffs surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average beat being 12.7%. The company currently carries a Zacks Rank #3.

Bath & Body Works is advancing its multi-year transformation through its Consumer First Formula, with encouraging progress across product innovation, digital recovery, marketplace expansion and international growth.

New and refreshed franchises are strengthening the innovation pipeline, while improved digital engagement, personalization and discovery are supporting return to growth. Marketplace momentum and the asset-light international model are expanding the brand’s reach, while stronger cash generation and debt reduction provide flexibility to fund transformation initiatives. Bath & Body Works surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters, missing the mark once, with the average beat being 43%. The company currently carries a Zacks Rank #3.

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