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Geopolitical tensions led by the sudden outbreak of the Israel-Hamas war have added to the already prevalent uncertain scenario. The rise in oil prices after Saudi Arabia and Russia extended voluntary supply cuts has also been one of the reasons for the turbulent scenario. Despite the headwinds, the solid September jobs report has lifted spirits as far as the U.S. equity markets are concerned. The better-than-expected report has gone a long way in reducing rate hike fears.
Given this topsy-turvy backdrop, investors would look to have stocks favored by brokers in their watchlist. This is because brokers are deemed to be experts in the field of investing. Therefore, investors would like to have stocks like Rev Group, CVR Energy, Cardinal Health, Commercial Vehicle Group and Archer Daniels Midland Co. in their respective portfolios for attractive returns.
Why Broker Advice Is Important
As brokers indulge in extensive research on stocks under their coverage, they have access to detailed information on a company. They attend company conference calls/presentations and scrutinize every piece of document available in the public domain before instructing investors.
Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. Naturally, their estimate revisions serve as an important pointer regarding the price of a stock.
Given this extensive know-how, brokers are deemed to be experts in the field of investing, equipped with thorough knowledge and a clear insight into the nitty gritty of the investment world. Paying heed to such well-researched information is, therefore, advisable for investors to avoid the unfortunate scenario of one’s hard-earned money invested in stock markets going down the drain.
Making the Most of Broker Knowledge
The above write-up clearly suggests that by following broker actions, one can arrive at a promising basket of stocks. Keeping this in mind, we have designed a screen to shortlist stocks based on improving analyst recommendations and upward earnings estimate revisions over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is considered in designing a winning portfolio of stocks. The price/sales ratio takes care of the company’s top line, making the strategy extremely effective.
Here are five of the 10 stocks that made it through the screen:
REV Group manufactures specialty vehicles that operate within niche segments like fire and emergency, commercial activities and RVs. The Zacks Consensus Estimate for this Brookfield, WI-based firm’s fiscal 2023 earnings per share indicates 46.25% year-over-year growth.
REV Group beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 303.6%, on average. REVG currently sports a Zacks Rank #1 (Strong Buy).
CVR Energy is an independent refiner and marketer of high-value transportation fuels. CVI is also a producer of ammonia and urea ammonia nitrate fertilizers. CVI's petroleum business includes a full-coking sour crude refinery in Coffeyville, KS. Its efforts to reward its shareholders underline its strong financial position. The robust Nitrogen Fertilizer unit is supporting growth.
CVR Energy, currently sporting a Zacks Rank #1, has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.1% over the past 60 days.
Ohio-based Cardinal Health is a nationwide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. CAH’s diversified product portfolio bodes well and should drive growth.
Cardinal Health, currently carrying a Zacks Rank of 2, has an impressive surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 16.03%.
Commercial Vehicle supplies interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market, the construction market and other specialized transportation markets.
The Zacks Consensus Estimate for CVGI’s 2023 and 2024 earnings implies year-over-year growth of 102% and 12%, respectively. Estimates for 2023 and 2024 earnings per share have moved up by 8% and 5.5%, respectively, over the past 90 days. Ohio-based Commercial Vehicle currently carries a Zacks Rank #3.
Archer Daniels' leadership in critical global trends like flexitarian diets, nutrition and sustainable materials has contributed to its momentum. Its focus on investing in assets and technological capabilities to serve customers efficiently is likely to be a significant growth driver. Solid demand, improved productivity and product innovations have been driving growth. This Chicago, IL-based agricultural product company’s has been progressing well on its three strategic pillars — optimize, drive and growth.
The Zacks Consensus Estimate for Archer Daniels’ 2023 earnings has increased 0.8% in the past 30 days to $7.18 per share. The Zacks Consensus Estimate for ADM’s 2023 earnings suggests an increase of 5.4% over the past 90 days. The company currently has a Zacks Rank #3.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
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.
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.
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer. 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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights Rev Group, CVR Energy, Cardinal Health, Commercial Vehicle and Archer Daniels Midland
For Immediate Release
Chicago, IL – October 17, 2023 – Stocks in this week’s article are Rev Group (REVG - Free Report) , CVR Energy (CVI - Free Report) , Cardinal Health (CAH - Free Report) , Commercial Vehicle Group (CVGI - Free Report) and Archer Daniels Midland Co. (ADM - Free Report) .
5 Stocks Brokers Favor Despite Ongoing Uncertainty
Geopolitical tensions led by the sudden outbreak of the Israel-Hamas war have added to the already prevalent uncertain scenario. The rise in oil prices after Saudi Arabia and Russia extended voluntary supply cuts has also been one of the reasons for the turbulent scenario. Despite the headwinds, the solid September jobs report has lifted spirits as far as the U.S. equity markets are concerned. The better-than-expected report has gone a long way in reducing rate hike fears.
Given this topsy-turvy backdrop, investors would look to have stocks favored by brokers in their watchlist. This is because brokers are deemed to be experts in the field of investing. Therefore, investors would like to have stocks like Rev Group, CVR Energy, Cardinal Health, Commercial Vehicle Group and Archer Daniels Midland Co. in their respective portfolios for attractive returns.
Why Broker Advice Is Important
As brokers indulge in extensive research on stocks under their coverage, they have access to detailed information on a company. They attend company conference calls/presentations and scrutinize every piece of document available in the public domain before instructing investors.
Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. Naturally, their estimate revisions serve as an important pointer regarding the price of a stock.
Given this extensive know-how, brokers are deemed to be experts in the field of investing, equipped with thorough knowledge and a clear insight into the nitty gritty of the investment world. Paying heed to such well-researched information is, therefore, advisable for investors to avoid the unfortunate scenario of one’s hard-earned money invested in stock markets going down the drain.
Making the Most of Broker Knowledge
The above write-up clearly suggests that by following broker actions, one can arrive at a promising basket of stocks. Keeping this in mind, we have designed a screen to shortlist stocks based on improving analyst recommendations and upward earnings estimate revisions over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is considered in designing a winning portfolio of stocks. The price/sales ratio takes care of the company’s top line, making the strategy extremely effective.
Here are five of the 10 stocks that made it through the screen:
REV Group manufactures specialty vehicles that operate within niche segments like fire and emergency, commercial activities and RVs. The Zacks Consensus Estimate for this Brookfield, WI-based firm’s fiscal 2023 earnings per share indicates 46.25% year-over-year growth.
REV Group beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 303.6%, on average. REVG currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
CVR Energy is an independent refiner and marketer of high-value transportation fuels. CVI is also a producer of ammonia and urea ammonia nitrate fertilizers. CVI's petroleum business includes a full-coking sour crude refinery in Coffeyville, KS. Its efforts to reward its shareholders underline its strong financial position. The robust Nitrogen Fertilizer unit is supporting growth.
CVR Energy, currently sporting a Zacks Rank #1, has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.1% over the past 60 days.
Ohio-based Cardinal Health is a nationwide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. CAH’s diversified product portfolio bodes well and should drive growth.
Cardinal Health, currently carrying a Zacks Rank of 2, has an impressive surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 16.03%.
Commercial Vehicle supplies interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market, the construction market and other specialized transportation markets.
The Zacks Consensus Estimate for CVGI’s 2023 and 2024 earnings implies year-over-year growth of 102% and 12%, respectively. Estimates for 2023 and 2024 earnings per share have moved up by 8% and 5.5%, respectively, over the past 90 days. Ohio-based Commercial Vehicle currently carries a Zacks Rank #3.
Archer Daniels' leadership in critical global trends like flexitarian diets, nutrition and sustainable materials has contributed to its momentum. Its focus on investing in assets and technological capabilities to serve customers efficiently is likely to be a significant growth driver. Solid demand, improved productivity and product innovations have been driving growth. This Chicago, IL-based agricultural product company’s has been progressing well on its three strategic pillars — optimize, drive and growth.
The Zacks Consensus Estimate for Archer Daniels’ 2023 earnings has increased 0.8% in the past 30 days to $7.18 per share. The Zacks Consensus Estimate for ADM’s 2023 earnings suggests an increase of 5.4% over the past 90 days. The company currently has a Zacks Rank #3.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2166314/5-stocks-that-brokers-favor-despite-the-ongoing-uncertainty
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.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer. 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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.