3 Stocks With Upgraded Broker Ratings To Bet On Right Now
Zacks Investment Research | Feb 15, 2019 07:14AM ET
Market sentiments have been relatively positive over the past few days. While this indicates that fresh investments could be profitable, one could end up buying overvalued stocks.
Wondering how to select the right stocks? Here, expert advice can be very helpful. So, one way is to follow rating upgrades by brokers.
As brokers directly communicate with the top management, they have in-depth idea about what’s happening in a particular company. Further, they diligently go through the company’s publicly available documents and even attend conference calls.
Moreover, brokers have a thorough understanding of the overall sector and industry. They place the company fundamentals against the current economic backdrop to figure out how the stock will fare as an investment.
Hence, when brokers upgrade a stock, you can rely on their judgment. But solely depending on broker upgrades is not a good way to build your investment portfolio. Several other factors should be taken into consideration to ensure steady 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 past 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 Zacks Investment Research
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