Upgraded Broker Ratings Make These 5 Stocks Worth Buying Now
Zacks Investment Research | Apr 26, 2018 11:45PM ET
With Q1 earnings season in full swing, some investors may get easily carried away by earnings beat and quarterly performances. One may think it’s quite an easy task to choose stocks during this time.
Actually, it’s the opposite. Just because a company has performed well in a particular quarter, it can’t be picked for investment. Thorough research is required before investing in any stock.
For an individual investor, going through financials for each and every company and then deciding which ones to buy can be a daunting task. So here, some expert advice could be helpful. By following broker recommendations, one can find investment worthy stocks.
Brokers have deeper insight into what’s happening in a particular company as they directly communicate with management. Also, they have a comprehensive understanding of the overall industry.
Brokers research on a company’s publicly available financial statements, listen to conference calls and engage in talks directly with 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.
Further, brokers understand the company fundamentals and try to place them against the present economic background to figure out how it may fare as an investment. Hence, after thorough research, brokers decide to rate that particular company’s stock. So, when an analyst upgrades a stock, one can easily depend on it.
However, solely depending on analysts’ upgrades is not the right way to build an investment portfolio. One should also take into consideration certain other factors to ensure robust returns.
Picking 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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