5 Best Stocks Worth Buying On Upgraded Broker Ratings
Zacks Investment Research | Jan 07, 2018 09:31PM ET
Picking stocks from the vast investment universe is not an easy task. For this, one has to understand the fundamentals of every company and try to place them against the current economic background to figure out how it may fare as an investment.
One way to accomplish this task is to follow broker recommendation. Brokers have more insight into what’s happening in a particular company as they directly communicate with management. Also, they have deeper understanding of the overall industry.
Specifically, brokers research on a company’s publicly available financial statements, listen to conference calls and engage in talks directly with the top management. At times, they even talk with customers to gauge what they like or dislike about the products and services offered by the company.
So, it is only after thorough research that brokers decide to rate a particular company’s stock. Naturally, when an analyst upgrades a stock, one can easily rely on it.
However, solely depending on analysts’ upgrades is not the right way to build investment portfolio. One should also take into consideration other factors to ensure solid returns.
Choosing the Winning Strategy
We have a screening strategy that will help in your search for potential winners:
Broker Rating Upgrades (4 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 Zacks Investment Research
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