For Immediate Release
Chicago, IL – November 6, 2019 - Stocks in this week’s article are Builders FirstSource (BLDR - Free Report) , CONSOL Energy (CEIX - Free Report) , Arrow Electronics (ARW - Free Report) , Clearwater Paper Corp. (CLW - Free Report) and AutoNation (AN - Free Report) .
5 Stocks in the Limelight Following Broker Rating Upgrades
The Q3 earnings season has unveiled a rosy picture so far with many companies reporting better-than-expected earnings per share. According to the latest Earnings Preview, more than 71% of S&P 500 companies reported their financial numbers with 74.5% of them beating estimates on the bottom-line front.
Investors like to add outperformers as they strive to design a portfolio of stocks that will fetch them handsome returns.
However, the task is by no means an easy one This is because the investing world is fraught with uncertainties and stock prices are sensitive to recent developments. The same group of stocks may not work under all circumstances.
For example, airline stocks may benefit from declining oil prices but may fall out of favor in the event of oil prices moving up. One of the well-accepted strategies to brave market uncertainties is to maintain a well-diversified (i.e. include stocks from different industries) portfolio.
Furthermore, with a plethora of stocks available in the market at any point of time, spotting potential outperformers is by no means an easy task for individual investors. In the absence of proper guidance, to identify a winning stock is akin to searching for ‘a needle in a haystack’ for an investor. Additionally, with time at a premium these days, it is next to impossible for investors to go through the extensive process. Given this backdrop, it is in the best interest of investors to seek guidance from “experts in the field”. The concerned experts are brokers.
Why You Should Pay Heed to Broker Advice
The opinion of brokers acts as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock. They have a lot more information on a company and its prospects than individual investors as they not only scrutinize the publicly available financial documents but also attend company conference calls and other presentations.
Given their expertise, it is prudent for investors to pay heed to broker advice while formulating their investment strategy. Of the three types of brokers/analysts (sell-side, buy-side and independent), 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.
Moreover, broker ratings are backed by sound logic. The estimate revisions serve as an important pointer regarding the price of a stock. In fact, a rating upgrade normally leads to stock price appreciation and vice versa.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/604584/5-stocks-in-the-limelight-following-broker-rating-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.
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