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Zacks.com featured highlights include American Airlines, Alaska Air Group, Warner Bros. Discovery, Dana and Best Buy

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For Immediate Release

Chicago, IL – September 23, 2024 – Stocks in this week’s article are American Airlines (AAL - Free Report) , Alaska Air Group (ALK - Free Report) , Warner Bros. Discovery (WBD - Free Report) , Dana (DAN - Free Report) and Best Buy Co. (BBY - Free Report) .

5 Broker-Loved Stocks to Buy on Fed Rate Cut

On Sept. 18, 2024, the Federal Reserve cut interest rates by 50 basis points in response to the cooling inflation scenario. This was the first time that interest rates were slashed since March 2020. While a 25-basis-point rate cut was more or less assured, the 50-basis-point rate cut highlights the Fed's increasing focus on bolstering the job market. The Fed signaled that it will cut the rate by another half a percentage point in the current year.

The economy is likely to benefit from this considerable rate cut. Given this brightening scenario, investors should design a winning portfolio of broker-friendly stocks for impressive returns. Brokers are deemed to be experts in the field of investing. Stocks such as American Airlines, Alaska Air Group, Warner Bros. Discovery, Dana and Best Buy Co. should grace their portfolios.

We have designed a screening process to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company's top line, making the strategy a well-rounded one.

Here are five of the 10 stocks that made it through the screening:

American Airlines is based in Fort Worth, TX. A gradual increase in air travel demand (particularly for leisure) is aiding AAL. However, high operating costs are hurting its bottom line.

The Zacks Consensus Estimate for third-quarter 2024 earnings has been unchanged at 4 cents per shareover the past 90 days. AAL currently carries a Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here

Alaska Air is based in Seattle, WA. The uptick in air travel demand is aiding the airline. The carrier's shareholder-friendly attitude bodes well.

Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has been revised 8.8% upward. The Zacks Consensus Estimate for 2025 earnings has been revised 2.9% upward over the past 60 days. ALK currently carries a Zacks Rank #3.

Warner Bros. Discovery benefits from impressive streaming subscriber growth, driven by an expanding content portfolio. The company's focus on sports streaming, particularly live sports, is another tailwind.

WBD currently carries a Zacks Rank #3. The Zacks Consensus Estimate for WBD's current-quarter earnings indicates growth in excess of 100% from the year-ago actual.

Dana is a provider of power conveyance and energy-management solutions for vehicles and machinery in North America, Europe, South America and the Asia Pacific. The company is headquartered in Maumee, OH.

DAN currently carries a Zacks Rank #3. The Zacks Consensus Estimate for DAN's 2024 earnings has been revised 30.7% upward over the past 60 days.

Best Buy retails technology products in the United States and Canada. The companyis benefitting from an uptick in retail sales. Best Buy's initiatives to invest in systems and boost omni-channel capabilities should certainly lift its profit margins.

Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has been revised 2.5% upward. The company currently carries a Zacks Rank #3.

You can get the rest of the stocks on this list by signing up now for a 2-week free trial to the Research Wizard stock picking and backtesting software. You can also create your own strategies and test them first before making investments.

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/2339066/5-broker-loved-stocks-to-keep-an-eye-on-post-feds-huge-rate-cut

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.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Contact: Jim Giaquinto

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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/performancefor information about the performance numbers displayed in this press release.

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