For Immediate Release
Chicago, IL – October 7, 2019 - Stocks in this week’s article are American Airlines Group (AAL - Free Report) , Beazer Homes USA (BZH - Free Report) , Asbury Automotive Group (ABG - Free Report) , AMC Entertainment Holdings (AMC - Free Report) and Beacon Roofing Supply (BECN - Free Report) .
5 Broker Favorite Stocks in Focus on Recent Analyst Upgrades
With the Q3 earnings season approaching, investors would look to add stocks to their respective portfolios, which have the potential to surpass earnings expectations in the to-be-reported quarter. This is because an earnings beat generally leads to stock price appreciation.
Investors after all, while shelling out their hard-earned money in the stock market, are governed by the sole objective of generating handsome returns on their portfolio. However, the task of designing one’s portfolio with potential outperformers is not an easy one. In fact, equity market tricks are not easy to master with a plethora of stocks flooding the space at any point of time. The task becomes even more difficult when one tries to select a winning portfolio without proper guidance.
Time for Some Broker Advice?
In view of the aforementioned constraints, it is in the best interest of investors to be guided by the experts in the field. The concerned experts are brokers. Brokers, irrespective of their types (sell-side, buy-side or independent), undertake thorough research of the stocks covered by them.
They have at their disposal a lot more information on a company and its prospects than individual investors. To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Broker opinion should thus act as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock.
Direction of Earnings Estimates Serves as a Proper Guide
Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. Naturally, their estimate revisions serve as an important pointer regarding the price of a stock.
For example, an earnings outperformance by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings often lead to stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy.
To take care of the earnings performance, we have designed a screen based on improving broker recommendation and upward estimate revisions over the last four weeks.
Do Not Ignore the Top Line
Designing a strategy based solely on the bottom line is unlikely to result in a winning approach. Actually, according to many market watchers, a revenue beat is more creditable for a company than a mere earnings outperformance, especially in an environment of revenue weakness due to macroeconomic headwinds. To address top-line concerns, we have included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/549222/5-broker-favorite-stocks-in-focus-on-recent-analyst-upgrades
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 >>.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.