5 Stocks With Upgraded Broker Ratings Worth Betting On Now
Zacks Investment Research | May 08, 2019 07:33AM ET
It’s not easy for an individual investor to pick stocks on his own and gain from it, given several fundamental and technical aspects that need to be considered for spotting potential winners. This is where expert advice comes in handy.
As brokers are in direct communication with companies, they have deeper understanding about them. Hence, following what majority of brokers are saying about a stock can help one understand its potential easily.
Additionally, they analyze fundamentals of a company and place them against the current economic backdrop to understand out how the stock will fare as an investment. Further, brokers have a deeper insight of the overall industry and economy.
Specifically, brokers analyze a company’s publicly available financial statements, attend conference calls and communicate directly with top management. They even talk to customers to understand what they like or dislike about the products and services offered by the company.
Therefore, there’s comprehensive research behind the rating of a broker on a company’s stock. Naturally, when an analyst upgrades a stock, one can easily rely on it.
Nonetheless, it’s not wise to solely depend on broker upgrades to build an investment portfolio. One must also take into consideration certain other factors 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 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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