For Immediate Release
Chicago, IL – May 20, 2020 – Stocks in this week’s article are Aeglea BioTherapeutics, Inc. (
AGLE Quick Quote AGLE - Free Report) , VeriSign, Inc. ( VRSN Quick Quote VRSN - Free Report) , Sequans Communications S.A. ( SQNS Quick Quote SQNS - Free Report) and New Jersey Resources Corp. ( NJR Quick Quote NJR - Free Report) . 4 Stocks in the Limelight on New Analyst Coverage
At a time when coronavirus-hit economic data (weak retail sales and industrial production) has been tarnishing investors’ sentiments, proposal for new stimulus, reopening of the economy and improving prospects of a vaccine have been instilling optimism. In such a scenario, investors may look for stocks that recently came under new analyst coverage. This is because analysts don’t initiate coverage on a stock randomly. New coverage is usually the result of huge investor focus on a stock or its promising prospects.
Interestingly, stocks typically see an incremental upward price movement with new analyst coverage compared to what they witness with continuation of existing analyst coverage. Of course, the price movement depends on the recommendations from the new analysts. Positive recommendations — Buy and Strong Buy — lead to a significant positive incremental price reaction than Strong Sell, Sell or Hold recommendations.
Moreover, if an analyst gives a new recommendation on a company that has limited or no analyst coverage, investors start paying more attention to it. As analysts almost always initiate coverage with a positive recommendation. Also, any new information attracts portfolio managers to build a position in the stock.
However, one should preferably look for the average change in broker recommendation rather than a single recommendation change. Then again, an upgrade, an initiation or even increased coverage is equally important.
Keeping this mind, it’s a good strategy to focus on the number of analyst recommendations that have increased 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/933137/4-stocks-in-the-limelight-on-new-analyst-coverage 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
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