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Add These 3 Stocks With Upgraded Broker Ratings to Portfolio

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It’s not an easy task for an individual investor to pick winning stocks on his own as there are several fundamental and technical aspects that need to be considered for spotting the potential gainers. This is where expert advice comes handy.

As brokers are in direct communication with top management of companies, they have deeper insight into what’s happening in it. Therefore, following what the majority of brokers are saying about a stock can help one understand its potential easily.     

Further, brokers analyze fundamentals of the company and place them against the present economic backdrop to figure out how the stock will fare as an investment. Also, they have a deeper understanding of the overall industry and economy.

Specifically, brokers analyze a company’s publicly available financial statements, attend conference calls and communicate with management. They even talk to customers to gauge their likes or dislikes about products and services offered by the company.

Hence, there’s comprehensive research behind the rating of a broker on a company’s stock. Naturally, when an analyst upgrades a stock, you can easily rely on it.

Nevertheless, it’s not correct to solely depend on analysts’ opinions to build your investment portfolio. You must also take into consideration certain other factors to ensure strong returns.

Picking the Winning Strategy

We have a screening strategy that will help in your search for potential winners:

Broker Rating Upgrades (four weeks) of 1% or more: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the last four weeks.

Current Price greater than $5: The stocks must be trading above $5.

Average 20-day Volume greater than 100,000: A large trading volume guarantees that the stock is easily tradable.

Zacks Rank equal to #1 or 2: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.

VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.

Here are the three stocks that qualified the screening:

Changyou.com Limited , based in Beijing, China, develops and operates online games. Its earnings are expected to grow 12.5% in 2020. The stock, carrying a Zacks Rank #2, has witnessed 50% upward revision in broker ratings over the past four weeks.

Based in Greece, Danaos Corporation (DAC - Free Report) owns and operates containerships. Its 2020 earnings are expected to rise 2.4%. The stock, carrying a Zacks Rank #2, has witnessed 100% upward revision in broker ratings over the past four weeks.

Sony Corporation , headquartered in Tokyo, Japan, designs, develops, produces, and sells electronic equipment, instruments and devices. Its earnings are expected to increase 15% in 2020. The stock, sporting a Zacks Rank #1, has witnessed 16.7% upward revision in broker ratings over the past four weeks.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

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.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at:
https://www.zacks.com/performance


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