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Zacks.com featured highlights include: Assurant, Opera, ANI, eXp and Avista

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For Immediate Release

Chicago, IL – October 10, 2019 - Stocks in this week’s article are Assurant, Inc. (AIZ - Free Report) , Opera Ltd. (OPRA - Free Report) , ANI Pharmaceuticals, Inc. (ANIP - Free Report) , eXp World Holdings, Inc. (EXPI - Free Report) and Avista Corp. (AVA - Free Report) .

5 Stocks to Consider as New Analysts Initiate Coverage

Coverage initiation on a stock by analyst(s) helps in interpreting information pertaining to capital markets, creating value for investors. Lack of information creates inefficiencies that might trigger misinterpretation of stocks (over- or under-valued).

In fact, coverage initiation usually depicts increased investor inclination. Investors, on their part, often assume that there is something in the stock that has attracted analyst attention. In other words, they believe that the company coming under the microscope definitely has some value.
Obviously, stocks are not arbitrarily chosen to cover. New coverage on a stock usually reflects an encouraging future envisioned by the analyst(s). At times, increased investor focus on a stock motivates analysts to take a closer look at it.

Notably, the average change in broker recommendation is preferred over a single recommendation change.

How Does Analyst Coverage Influence Stock Price?

The price movement of a stock is generally a function of the recommendations on it from new analysts. Stocks typically see an upward price movement with a new analyst coverage compared to what they witness with a rating upgrade under an existing coverage. Positive recommendations — Buy and Strong Buy — generally lead to a significantly more positive price reaction than Hold recommendations. On the contrary, analysts hardly initiate coverage with a Strong Sell or Sell recommendation.

Now, if an analyst gives a new recommendation on a company that has very few or no existing coverage, investors start paying more attention to it. Also, any new information attracts portfolio managers to build a position in the stock.

So, it’s a good strategy to bet on stocks that have seen increased analyst coverage over the last few weeks.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/556074/5-stocks-to-consider-as-new-analysts-initiate-coverage

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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Strong Stocks that Should Be in the News

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