For Immediate Release
Chicago, IL – December 9, 2019 - Stocks in this week’s article are American Airlines Group (NASDAQ:AAL) , AutoNation (NYSE:AN) , Dillard's (NYSE:DDS) , Montage Resources Corp. (NYSE:MR) and Boise Cascade Co. (NYSE:BCC) .
5 High-Flying Stocks After Recent Broker Rating Upgrades
The sole aim of investors, while designing their portfolio, is to generate attractive returns. No one wants his/her hard-earned money to go down the drain. However, with a plethora of stocks flooding the stock market, the task is by no means an easy one. In fact, the process is like spotting a needle in a haystack, especially if the investor is unaided.
Choice of improper stocks can adversely impact his/her returns, thereby ruining the very objective of investing hard-earned money in the highly unpredictable stock market. To avoid such confusion, investors, more often than not, rely on guidance provided by brokers as they have a clear insight into the complexities surrounding the investment world.
Brokers revise their earnings estimates after carefully examining the pros and cons of an event for the concerned stock. Naturally, their stock related actions (upgrade or downgrade) serve as an invaluable guide as far as fixing the target price of stock (s) is concerned.
Moreover, the abovementioned action of brokers is by no means arbitrary and is instead guided by sound logic. Thus, the direction of estimate revisions serves as an important pointer regarding the price of a stock.
For example, an earnings beat by a company generally leads to upward estimate revisions with prices moving north. Similarly, a stock may fall out of analysts’ favor due to adverse events like pipeline failure (for a biotech company). Trimming of earnings estimates by brokers often leads to stock price depreciation. Naturally, investors would look to dump such stocks on the basis of broker advice.
To take care of the bottom-line performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the last four weeks.
Top Line to Be Considered As Well
Designing a strategy based solely on the bottom line is unlikely to culminate in a winning strategy. Actually, according to many market watchers a revenue beat is more creditable for a company than a mere earnings outperformance, especially in an environment of revenue weakness due to macroeconomic headwinds. To take care of the top line, we have included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/657601/5-highflying-stocks-after-recent-broker-rating-upgrades
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
American Airlines Group Inc. (AAL): Free Stock Analysis Report
AutoNation, Inc. (AN): Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC): Free Stock Analysis Report
Eclipse Resources Corporation (MR): Free Stock Analysis Report
Dillard's, Inc. (DDS): Free Stock Analysis Report
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