Zacks.com Featured Highlights Include: Diebold Nixdorf, CVS Health, AmerisourceBergen, AutoNation And Clearwater Paper
Zacks Investment Research | Aug 14, 2019 08:36AM ET
For Immediate Release
Chicago, IL – August 14, 2019 - Stocks in this week’s article are Diebold Nixdorf (NYSE:DBD) , CVS Health (NYSE:CVS) , AmerisourceBergen Corporation (NYSE:ABC) , AutoNation (NYSE:AN) and Clearwater Paper (NYSE:CLW) .
5 Stocks That Brokers Currently Love
Lack of proper guidance may lead an investor to make wrong choices while designing their portfolio. The addition of random stocks to one’s portfolio can adversely impact returns, thereby ruining the very objective of investing.
Why Broker Advice is a Must
The opinion of brokers is highly valued by investors as they have a clear insight into the nitty gritty of the investment world. Brokers thoroughly scrutinize the publicly available financial documents apart from attending company conference calls and other presentations. Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide unbiased opinion to investors after thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
Brokers revise their earnings estimates after carefully examining the pros and cons of an event for the concerned stock. Estimates can move north for a number of reasons — favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario. On the contrary, lackluster earnings often result in stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy.
The above write up clearly demonstrates the utility of broker guidance for investors while deciding their course of action (buy, sell or hold) on a particular stock. To take care of the earnings performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the last four weeks.
What About Revenues?
While we have talked about the bottom line in detail, the top line (revenue portion) cannot be ignored. Actually, according to many market watchers a revenue beat is more creditable for a company than a mere earnings outperformance. Therefore, we have included in our screen the price/sales ratio that serves as a strong complementary valuation metric.
For the rest of this Screen of the Week article please visit Zacks.com at:Original post
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