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Upgraded Broker Ratings Make These 3 Stocks Attractive

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As market sentiments are extremely volatile markets these days, it becomes difficult for individual investors to select stocks on their own and generate solid returns. At present, markets are facing concerns regarding the ongoing Russia-Ukraine conflict and unprecedented inflation numbers. Thus, selecting stocks that will generate solid returns at present is a daunting task.

Then how does an investor choose the right stocks? One way is to follow rating upgrades by brokers. Thus, in this regard, stocks like Zebra Technologies Corporation (ZBRA - Free Report) , Centennial Resource Development Inc. and Core & Main, Inc. (CNM - Free Report) are worth betting on.

As brokers directly communicate with the top management, they have an in-depth idea about what’s happening in a particular company. Also, they diligently go through the company’s publicly available documents and even attend conference calls.

Brokers have a thorough understanding of the overall sector and industry. They place the company fundamentals against the current economic backdrop to determine how the stock will fare as an investment.

Thus, when brokers upgrade a stock, you can rely on their judgment. But solely depending on broker upgrades is not a good way to build your investment portfolio. Several other factors should be taken into consideration to ensure steady returns.

Selecting the Winning Strategy

We have a screening strategy that will help you 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 the complete list of today’s Zacks #1 Rank stocks here.

VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.

Here are the three stocks that qualified the screening:

Headquartered in Lincolnshire, IL, Zebra Technologies is the leading provider of enterprise asset intelligence solutions in the automatic identification and data capture solutions industry worldwide. ZBRA has a diversified portfolio of products and solutions that includes cloud-based subscriptions and a full range of services like maintenance, repair, technical support, managed and professional services.

The company’s earnings for 2022 are expected to grow 7.2%. Zebra Technologies, currently carrying a Zacks Rank #2, has witnessed a 20% upward revision in broker ratings over the past four weeks.

Denver, CO-based Centennial Resource is an independent oil and gas exploration and production company. CDEV is a pure-play Permian Basin oil producer and has a huge acreage position in the Delaware Basin.

Centennial Resource’s 2022 earnings are projected to surge 113%. The stock, sporting a Zacks Rank #1 at present, has witnessed a 10% upward revision in broker ratings over the past four weeks.

Saint Louis, MO-based Core & Main distributes water, wastewater, storm drainage and fire protection products and related services. CNM's specialty products and services are used in the maintenance, repair, replacement and construction of water and fire protection infrastructure.

The company’s earnings for fiscal 2022 are expected to jump 53%. Core & Main, which currently carries a Zacks Rank #2, has witnessed a 12.5% upward revision in broker ratings over the past four weeks.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

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.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at:
https://www.zacks.com/performance


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