Upgraded Broker Ratings Make These 5 Stocks Worth A Look Now
Zacks Investment Research | Dec 13, 2018 07:06AM ET
Selecting stocks from the vast investment universe can be daunting. For this, one has to understand the fundamentals of every company and try to place them against the present economic background to figure out how it may fare as an investment.
One reliable way of doing this is by following broker recommendation. Brokers have more insight into what’s happening in a particular company as they directly communicate with company management. Also, they have a 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 to customers to gauge what they like or dislike about the products and services offered by the company.
So, after thorough research, brokers decide to rate that particular company’s stock. Naturally, when an analyst upgrades a stock, you can easily rely on it.
Nonetheless, solely depending on analysts’ upgrades is not the right way to build your investment portfolio. One should also take into consideration other factors to ensure solid returns.
Picking 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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