Zacks.com Featured Highlights Include: ENVA, CAMT, SP And SOHU
Zacks Investment Research | Mar 18, 2020 12:11AM ET
For Immediate Release
Chicago, IL – March 18, 2020 - Stocks in this week’s article are Enova International, Inc. (NYSE:ENVA) , Camtek Ltd. (NASDAQ:CAMT) , SP Plus Corp. (NASDAQ:SP) and Sohu.com Ltd. (NASDAQ:SOHU) .
4 Stocks Set to Soar on New Analyst Coverage
Coronavirus fears have been dominating stock-market headlines of late, resulting in accelerated selloffs. Notably, the Dow Jones industrial average closed 12.9% down on Mar 16 — its worst percentage drop since 1987 — after President Donald Trump said the economy "may be" heading for recession. The broader Standard & Poor’s 500-stock index and the technology-rich Nasdaq suffered similar setbacks.
Now, as global stock markets are experiencing record levels of volatility, investors may look for stocks that have recently received new analyst coverage. The logic behind such action is that analysts don’t add a stock to their coverage randomly. New coverage on a stock is usually the result of huge investor focus on it or its promising prospects.
Interestingly, stocks typically see an incremental upward price movement with new analyst coverage compared to what they witness with continuation of existing analyst coverage. Of course, the price movement depends on the recommendations from the new analysts. Positive recommendations — Buy and Strong Buy — lead to a significant positive incremental price reaction than Strong Sell, Sell or Hold recommendations.
Moreover, if an analyst gives a new recommendation on a company that has limited or no analyst coverage, investors start paying more attention to it. As analysts almost always initiate coverage with a positive recommendation. Also, any new information attracts portfolio managers to build a position in the stock.
However, one should preferably look for the average change in broker recommendation rather than a single recommendation change. Then again, an upgrade, an initiation or even increased coverage is equally important.
Keeping this mind, it’s a good strategy to focus on the number of analyst recommendations that have increased over the last few weeks.
For the rest of this Screen of the Week article please visit Zacks.com at: Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.