For Immediate Release
Chicago, IL – October 10, 2018 - Stocks in this week’s article are Verso Corp. (VRS - Free Report) , AECOM (ACM - Free Report) , Dillard's Inc. (DDS - Free Report) , Casey's General Stores, Inc. (CASY - Free Report) and Best Buy Co., Inc. (BBY - Free Report) .
Recent Analyst Upgrades Bring These 5 Stocks in Focus
With the Q3 earnings season about to begin, investors look to add stocks that have the potential to surpass expectations. This is because an earnings beat generally leads to stock price appreciation.
However, the task of designing one’s portfolio with potential outperformers is anything but an easy one. In fact, equity market tricks are not easy to master with a number of stocks flooding the space at any point of time. The task becomes even more difficult when one tries to devise a winning portfolio without proper guidance.
Given time constraints, it is in the best interest of investors to be guided by experts in the field. In view of the above arguments, it can be safely stated that it is in the best interest of investors to pay heed to the opinion of brokers while deciding their course of action (buy, sell or hold) on a particular stock.
Broker Ratings Hold the Key
Broker ratings are backed by sound logic and are by no means arbitrary. Since brokers closely follow the stocks in their coverage, they revise earnings estimates only after carefully examining the pros and cons of an event for the concerned company.
Naturally, when investors see brokers revising their estimates or recommendation on a stock, they often assume that there is something in the stock that has attracted analyst attention. In fact, a rating upgrade generally leads to stock price appreciation.
Similarly, the price of a stock may plummet following a rating downgrade. In the event of estimates moving south, which can happen due to lower-than-expected earnings/modest sales or pipeline failure (for a biotech company), investors tend to offload the stock from their portfolio.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/326910/recent-analyst-upgrades-bring-these-5-stocks-in-focus
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