For Immediate Release
Chicago, IL – December 23, 2019 - Stocks in this week’s article are
American Airlines AAL, WESCO International ( WCC Quick Quote WCC - Free Report) , American Axle & Manufacturing Holdings AXL, California Resources Corp. CRC and Boise Cascade Company BCC. 5 Stocks to Watch for Post-Analyst Upgrades
Faltering in life due to improper guidance is not unusual. The same is true for the investing world. With a plethora of stocks flooding the market at any point of time, it is difficult for an investor to make the right choice while designing one’s portfolio, unless guided by the “experts” in this field.
These “experts” are brokers equipped with detailed knowledge about the space. Brokers, irrespective of their types (sell-side, buy-side or independent), have access to a lot more information on a company and its prospects than individual investors. Consequently, brokers’ opinions act as valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock.
Earnings Estimate Revisions – A Useful Pointer
Since brokers indulge in thorough research, the question of their actions being arbitrary does not arise. The direction of the estimate revisions acts as an important pointer regarding the price of a stock. In fact, a rating upgrade normally leads to stock-price appreciation and vice versa.
One of the well-accepted investment strategies is to maintain a diversified portfolio, in order 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.
To take care of the earnings performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the past four weeks.
What About Revenues?
While we have talked about the bottom line in detail, the top line (revenue portion) cannot be ignored. Notably, according to many market watchers a revenue beat is more creditable for a company than a mere earnings outperformance. To address top-line concerns, we have included the price/sales ratio in our screen that 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/683951/5-stocks-to-watch-out-for-post-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.
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Contact: Jim Giaquinto
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