Upgraded Broker Ratings Make These 5 Stocks Attractive
Zacks Investment Research | Apr 20, 2017 09:02PM ET
With the first-quarter earnings season ramping up, one should keep an eye on the financial performance of companies. But betting on stocks just based on their quarterly performances is not the right long-term investment strategy.
Several technical and fundamental aspects have to be taken into account while choosing stocks with steady performance. Hence, expert advice comes in handy while picking such stocks.
One can easily choose attractive stocks by following the broker upgrades. Brokers have deeper understanding of what’s happening in a particular company. Also, they thoroughly analyze the strengths and weaknesses of a company and consider them against the present economic backdrop to figure out how the stock will fare as an investment.
Additionally, brokers directly communicate with top management, attend conference calls and go through the company’s publicly available financial documents. They even talk to the customers to understand their likes/dislikes for the products and services offered by the company.
So, when a broker upgrades a stock, one can definitely rely on it. But merely depending on it is not wise though. One must take into consideration several other factors to ensure strong returns.
Picking the Winning Strategy
We have a screening strategy that will help in your search for potential winners:
Broker Rating Upgrades (4 weeks): The screen selects stocks that have witnessed broker rating upgrades 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: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven record of success. You can see Zacks Investment Research
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