For Immediate Release
Chicago, IL – August 6, 2018 - Stocks in this week’s article include: Dean Foods Company (DF - Free Report) , Archer Daniels Midland Company (ADM - Free Report) , Hub Group, Inc. (HUBG - Free Report) , Arrow Electronics, Inc. (ARW - Free Report) and Echo Global Logistics Inc. (ECHO - Free Report) .
Screen of the Week of Zacks Investment Research:
5 Stocks to Buy with Broker Rating Upgrades
The Q2 earnings season is in full swing with multiple companies having already reported their quarterly financial numbers. The picture that has emanated is an extremely healthy one with the top and the bottom lines of the S&P 500 companies expanding 9.3% and 23.9% respectively on a year-over-year basis, according to our Earnings Preview report.
While 80.1% companies outpaced the Zacks Consensus Estimate with respect to earnings, 73.8% beat expectations on the revenue front. Generally, an earnings beat by a company generally leads to an appreciation in its stock price. Given this highly bullish backdrop, investors would like to add outperformers to their respective portfolios for healthy returns.
However, the task is far from easy with a plethora of companies present in the market. Moreover, the complexities associated with the stock market makes it even more difficult for individual investors to select outperformers in their portfolios in the absence of proper guidance.
Broker Advice - An Invaluable Guide
The requisite guidance to design a winning portfolio comes from brokers. Brokers, not only scrutinize the publicly available financial documents, but also attend company conference calls and other presentations.
Since brokers arrive at their recommendation (buy, sell or hold) on a stock after thoroughly analyzing the company fundamentals, it is natural for investors to be guided by the direction of estimate revisions while deciding their course of action on a particular stock. Estimate revisions serve as an important pointer regarding the price of a stock. In fact, a rating upgrade generally leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade.
Estimates can move north for a number of reasons – favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario. To take care of the earnings performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the last four weeks.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/315823/5-stocks-on-cloud-nine-after-recent-broker-rating-upgrades
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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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Contact: Jim Giaquinto
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.