For Immediate Release
Chicago, IL – March 25, 2019– Stocks in this week’s article include American Airlines Group (AAL - Free Report) , Atlas Air Worldwide Holdings (AAWW - Free Report) , C&J Energy Services , Builders FirstSource (BLDR - Free Report) and Dana Inc. (DAN - Free Report) . Kevin Matras screens for companies showing their 'first' profit and explains why they are ones to watch.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
5 Stocks Basking in the Glory of Recent Analyst Upgrades
Proper guidance is often the difference between success and failure in life. The same holds true for the investing world. In the absence of proper guidance, identifying a winning stock is akin to searching for ‘a needle in a haystack’. Proper guidance, as far as investing is concerned, comes from brokers, who are deemed to be experts, equipped with vast knowledge of investing.
Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide unbiased opinion to investors after thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
Brokers, irrespective of their type, attend company conference calls/presentations and scrutinize every detail available publicly before advising investors about their course of action. Individual investors, more often than not, do not have access to such detailed and well-researched information.
Earnings Estimate Revisions – A Proper Guide
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. In fact, a rating upgrade or downgrade by brokers has the potential to influence the price of the stock.
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.
Estimates can move north for a number of reasons – favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/363090/5-stocks-basking-in-the-glory-of-recent-analyst-upgrades
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