For Immediate Release
Chicago, IL – July 30, 2019 - Stocks in this week’s article are Cardinal Health (CAH - Free Report) , Builders FirstSource (BLDR - Free Report) , AmerisourceBergen Corp. (ABC - Free Report) , AutoNation (AN - Free Report) and Party City Holdco (PRTY - Free Report) .
Recent Analyst Upgrades Add Shine to These 5 Stocks
The Q2 earnings season is in full swing. Despite headwinds like the Sino–U.S. trade tensions, the current reporting cycle has seen a healthy proportion of companies reporting better-than-expected earnings.
Generally, an earnings beat by a company leads to appreciation in its stock price. Given this 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 invest a lot of time in researching stocks under their coverage. Such investment specialists attend conference calls, company presentations and also interact with management.
Brokers revise their earnings estimates after carefully examining the pros and cons of an event for the concerned stock. Naturally, their stock related actions (upgrade or downgrade) serve as an invaluable guide as far as fixing target price of stock(s) is concerned. Therefore, it is prudent for investors to pay heed to broker advice in order to design a winning portfolio
Out of the three types of brokers (sell-side, buy-side and independent), sell-side analysts are the most common. They are employed by various brokerage firms to provide unbiased opinion on stocks. Meanwhile, buy-side analysts are employed by hedge funds, mutual funds and others while independent analysts directly sell their reports to investors.
Making the Most of Broker Opinions
By following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we have designed a screen to shortlist stocks based on improving analyst recommendation and upward earnings estimate revisions over the last four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy foolproof.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/452572/recent-analyst-upgrades-add-shine-to-these-5-stocks
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.
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