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Zacks.com featured highlights include: Anixter International, CVS Health, AmerisourceBergen, AECOM and Best Buy

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For Immediate Release

Chicago, IL – September 17, 2019 - Stocks in this week’s article are Anixter International (AXE - Free Report) , CVS Health (CVS - Free Report) , AmerisourceBergen (ABC - Free Report) , AECOM (ACM - Free Report) and Best Buy Company (BBY - Free Report) .

5 Stocks in the Limelight After Recent Broker Upgrades

Broker ratings are often the decisive factor behind investment decisions. Arriving at such decisions is by no means easy for individual investors as these involve picking the right stocks from diverse industries. In fact, the process is as demanding as spotting a needle in a haystack, especially if the investor is unaided.

This is where guidance from brokers comes into play. Of the three types of brokers/analysts (sell-side, buy-side and independent), sell-side analysts dominate the investment world. Various brokerage firms employ them to provide unbiased opinion to investors after thorough analysis. Buy-side analysts are employed by hedge funds, mutual funds, and others while the independent ones simply sell their reports to investors.

Brokers not only scrutinize the publicly available financial documents but also attend company conference calls and other presentations. Naturally, it is in the best interest of investors to pay heed to such well-researched information as they aim to rake in maximum returns from their portfolio.

Earnings Estimate Revisions – A Winning Pointer

Since the action of brokers is guided by sound logic, the direction of estimate revisions serves as an important pointer regarding the price of a stock. For example, an earnings beat by a company generally leads to upward estimate revisions with prices moving north. Similarly, a stock may fall out of analysts’ favor due to adverse events like pipeline failure (for a biotech player). Trimming of earnings estimates by brokers often leads to stock price depreciation. Naturally, investors look to dump such stocks on the basis of broker advice.

One of the well-accepted investment strategies is to maintain a diversified portfolio to generate handsome returns irrespective of the market conditions. For instance, in the face of extremely low oil prices, analysts adopt a bullish stance on airline stocks and consequently raise estimates.  Naturally, adding such stocks to one’s portfolio in such a scenario might prove to be a winning strategy.

Making the Most of Broker Opinions

The above write-up clearly suggests that 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 revisions to earnings estimates 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/521060/5-stocks-in-the-limelight-after-recent-broker-rating-upgrade

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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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

 

 

 

                                                                                     

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