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5 Stocks With Upgraded Broker Ratings to Fight Coronavirus Woes

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Markets are facing extreme volatility due to coronavirus concerns.It has become very difficult for individual investors to identify stocks with strong prospects. So, advice from experts is crucial.

Hence, you could simply follow broker rating upgrades.Brokers have a deeper insight into stocks, the sectors and the overall economy. Brokers directly communicate with top management. They also thoroughly study publicly available documents and attend conference calls.

In addition, brokers scrutinize the fundamentals of companies and place them against the current economic backdrop to find out how the stocks will fare as an investment option. Therefore, by following broker rating upgrades, you can easily find attractive stocks.

But solely depending on broker upgrades is not advisable. You must take into consideration a few other factors before adding a stock to your investment portfolio. This way you can ensure solid returns.

Choosing 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 five of the 10 stocks that qualified the screening:

La-Z-Boy Incorporated (LZB - Free Report) manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products. This Monroe, MI-based company’s fiscal 2020 earnings are expected to increase 10.3%. The stock, sporting a Zacks Rank #1, has witnessed 25% upward revision in broker ratings over the past four weeks.

Based in Newport Beach, CA, Chipotle Mexican Grill, Inc. (CMG - Free Report) operates Chipotle Mexican Grill restaurants. Its earnings are expected to surge 31.4% in 2020. The stock, carrying a Zacks Rank #2, has witnessed 7.4% upward revision in broker ratings over the past four weeks.

Headquartered in Bolingbrook, IL, Ulta Beauty, Inc. (ULTA - Free Report) operates as a beauty retailer. Its fiscal 2021 earnings are expected to grow 9.3%. The stock, carrying a Zacks Rank #2, has witnessed 4.8% upward revision in broker ratings over the past four weeks.

Cypress Semiconductor Corporation designs, develops, manufactures, markets and sells embedded system solutions. This San Jose, CA-based company’s 2020 earnings are expected to increase 11%. The stock, carrying a Zacks Rank #2, has witnessed 12.5% upward revision in broker ratings over the past four weeks.

Based in Daytona Beach, FL, TopBuild Corp. (BLD - Free Report) installs and distributes insulation and other building products. Its earnings are expected to surge 18.8% in 2020. The stock, carrying a Zacks Rank #2, has witnessed 16.7% upward revision in broker ratings over the past four weeks.

Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.

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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