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New Analyst Coverage: 3 Stocks to Add to Investors' Portfolio
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New analyst coverage can play a pivotal role in shaping market perception, increasing investor awareness, and driving stock price action, making it an influential factor in investors’ decision-making.
M/I Homes, Inc. (MHO - Free Report) , Byrna Technologies Inc. (BYRN - Free Report) and Delek Logistics Partners, LP (DKL - Free Report) are three stocks that have recently come under the analytical spotlight, signaling potential opportunities for smart investors.
When analysts initiate coverage on a stock, it is more than a mere endorsement — it is a spotlight on value. Investors are drawn to such stocks, believing that the scrutiny from analysts unveils hidden potential. Analysts, as intermediaries, hold a crucial role with their access to vital information, mitigating the fear of inefficiencies caused by lack of data.
Stocks chosen for coverage are not arbitrary; they are carefully selected, reflecting a positive outlook envisioned by the analysts. Ratings on newly covered stocks often lean more favorably than those on continuously covered stocks, emphasizing the attractiveness of these opportunities.
The impact on stock prices is undeniable. The entry of new analysts typically propels stocks upward, surpassing the effects of a rating upgrade under existing coverage. Positive recommendations such as Buy and Strong Buy trigger substantial price reactions, while Sell recommendations are rarely initiated by analysts.
Investors keen on identifying promising opportunities should turn their attention to stocks gaining increased analyst coverage. This would be a strategic move, as stocks with heightened analyst scrutiny tend to experience more significant price movements. Notably, the average change in broker recommendation holds more weight than a singular recommendation change, providing a more reliable indicator for investors.
The strategy is clear — focus on stocks attracting increased analyst coverage in recent weeks. These stocks not only capture investor attention but also stand to benefit from heightened interest by portfolio managers. In the ever-evolving landscape of investments, leveraging the insights provided by new analyst coverage emerges as a valuable tool for making informed and lucrative investment decisions.
Screening Criteria
The Number of Broker Ratings is greater than the Number of Broker Ratings four weeks ago (this will shortlist stocks that have recent new coverage).
Average Broker Rating less than Average Broker Rating four weeks ago (“less than” means “better than” four weeks ago).
Increased analyst coverage and improving average rating are the primary criteria of this strategy, but one should also consider other relevant parameters to make it foolproof.
Here are the other screening parameters:
Price greater than or equal to $5 (as a stock below $5 will not likely create significant interest for most investors).
Average Daily Volume greater than or equal to 100,000 shares (if the volume isn’t enough, it will not attract individual investors).
Here are three out of the five stocks that passed the screen:
M/I Homes: Based in Columbus, OH, this company engages in the construction and sale of single-family residential homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina and Tennessee. MHO currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MHO shares have gained 65.3% over the past year, outperforming the industry’s 51.6% rise. Earnings per share (EPS) estimates for MHO have moved north to $19.76 from $19.58 for 2024 in the past 30 days, depicting analysts’ optimism over the company’s prospects. The estimated figure indicates 21.9% growth from a year ago.
Byrna: Headquartered in Andover, MA, this is a less-lethal self-defense technology company. BYRN currently sports a Zacks Rank #1.
BYRN’s shares have gained 319.8% over the past year, outperforming the industry’s 38.9% rise. The bottom-line estimates for BYRN have moved north to earnings of 7 cents per share from a loss of 2 cents per share for 2024 in the past 30 days. Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 324.2%.
Delek Logistics Partners: Based in Brentwood, TN. Delek Logistics Partners, LP operates as a subsidiary of Delek US Holdings, Inc. Over the past year, DKL’s shares have lost 1.2% over the past year against the industry’s 21.1% growth.
DKL currently carries a Zacks Rank #2 (Buy). EPS estimates for DKL have moved north to $3.41 from $3.27 for 2024 over the last 60 days. Earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and met on other two occasions, the average surprise being 2.5%.
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 trading. Further, you can also create your strategies and test 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.
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New Analyst Coverage: 3 Stocks to Add to Investors' Portfolio
New analyst coverage can play a pivotal role in shaping market perception, increasing investor awareness, and driving stock price action, making it an influential factor in investors’ decision-making.
M/I Homes, Inc. (MHO - Free Report) , Byrna Technologies Inc. (BYRN - Free Report) and Delek Logistics Partners, LP (DKL - Free Report) are three stocks that have recently come under the analytical spotlight, signaling potential opportunities for smart investors.
When analysts initiate coverage on a stock, it is more than a mere endorsement — it is a spotlight on value. Investors are drawn to such stocks, believing that the scrutiny from analysts unveils hidden potential. Analysts, as intermediaries, hold a crucial role with their access to vital information, mitigating the fear of inefficiencies caused by lack of data.
Stocks chosen for coverage are not arbitrary; they are carefully selected, reflecting a positive outlook envisioned by the analysts. Ratings on newly covered stocks often lean more favorably than those on continuously covered stocks, emphasizing the attractiveness of these opportunities.
The impact on stock prices is undeniable. The entry of new analysts typically propels stocks upward, surpassing the effects of a rating upgrade under existing coverage. Positive recommendations such as Buy and Strong Buy trigger substantial price reactions, while Sell recommendations are rarely initiated by analysts.
Investors keen on identifying promising opportunities should turn their attention to stocks gaining increased analyst coverage. This would be a strategic move, as stocks with heightened analyst scrutiny tend to experience more significant price movements. Notably, the average change in broker recommendation holds more weight than a singular recommendation change, providing a more reliable indicator for investors.
The strategy is clear — focus on stocks attracting increased analyst coverage in recent weeks. These stocks not only capture investor attention but also stand to benefit from heightened interest by portfolio managers. In the ever-evolving landscape of investments, leveraging the insights provided by new analyst coverage emerges as a valuable tool for making informed and lucrative investment decisions.
Screening Criteria
The Number of Broker Ratings is greater than the Number of Broker Ratings four weeks ago (this will shortlist stocks that have recent new coverage).
Average Broker Rating less than Average Broker Rating four weeks ago (“less than” means “better than” four weeks ago).
Increased analyst coverage and improving average rating are the primary criteria of this strategy, but one should also consider other relevant parameters to make it foolproof.
Here are the other screening parameters:
Price greater than or equal to $5 (as a stock below $5 will not likely create significant interest for most investors).
Average Daily Volume greater than or equal to 100,000 shares (if the volume isn’t enough, it will not attract individual investors).
Here are three out of the five stocks that passed the screen:
M/I Homes: Based in Columbus, OH, this company engages in the construction and sale of single-family residential homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina and Tennessee. MHO currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MHO shares have gained 65.3% over the past year, outperforming the industry’s 51.6% rise. Earnings per share (EPS) estimates for MHO have moved north to $19.76 from $19.58 for 2024 in the past 30 days, depicting analysts’ optimism over the company’s prospects. The estimated figure indicates 21.9% growth from a year ago.
Byrna: Headquartered in Andover, MA, this is a less-lethal self-defense technology company. BYRN currently sports a Zacks Rank #1.
BYRN’s shares have gained 319.8% over the past year, outperforming the industry’s 38.9% rise. The bottom-line estimates for BYRN have moved north to earnings of 7 cents per share from a loss of 2 cents per share for 2024 in the past 30 days. Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 324.2%.
Delek Logistics Partners: Based in Brentwood, TN. Delek Logistics Partners, LP operates as a subsidiary of Delek US Holdings, Inc. Over the past year, DKL’s shares have lost 1.2% over the past year against the industry’s 21.1% growth.
DKL currently carries a Zacks Rank #2 (Buy). EPS estimates for DKL have moved north to $3.41 from $3.27 for 2024 over the last 60 days. Earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and met on other two occasions, the average surprise being 2.5%.
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 trading. Further, you can also create your strategies and test 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 of 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