For Immediate Release
Chicago, IL – February 14, 2020 – Stocks in this week’s article are Farmers National Banc Corp. (FMNB - Free Report) , Independent Bank Corp. (IBCP - Free Report) , First Financial Bankshares, Inc. (FFIN - Free Report) , HarborOne Bancorp, Inc. (HONE - Free Report) and Cue Biopharma, Inc. (CUE - Free Report) .
5 Stocks to Make the Most Out of New Analyst Coverage
Coverage initiation on a stock by analyst(s) is critical for making investment decisions. This is because analysts provide key information on a stock, which is of great value to investors. There’s no denying that the lack of consistency in information creates inefficiencies that might result in misinterpretation of stocks.
Initiation of coverage by analysts 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 radar definitely has some value which can be tapped into. At times, increased investor focus on a stock encourages analysts to take a closer look.
Then again, average change in broker recommendation is always preferred over a single recommendation change.
Impact on Price Movement
The price movement of a stock generally depends on the recommendations on it from new analysts. Usually, stocks see an upward price movement on new analyst coverage compared to what was witnessed with a rating upgrade under an existing coverage. Positive recommendations – Buy and Strong Buy – generally lead to a significantly 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 limited 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.
Below, we have selected four 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/763798/5-stocks-to-make-the-most-of-new-analyst-coverage
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