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5 Stocks with Upgraded Broker Ratings Worth Investing
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With 2016 drawing to a close, you should have your investment objectives for the next year in place. Overall, market sentiments have been fairly positive in 2016 so far (other than a slight bump in the first half) and the same is likely to continue next year.
Therefore, this is the right time to add a few great stocks to your portfolio. But selecting stocks from the vast investment universe can be a daunting task. For this, you will have to painstakingly go through the fundamentals of every company and try to place them against the current economic background to figure out how it may fare as an investment.
One way to cut this task out is to follow broker recommendation. Brokers have far more insight into what’s happening in a particular company as they directly communicate with the management. Further, they have a deeper understanding of the overall industry.
In addition, brokers thoroughly research a company’s publicly available documents, attend conference calls and engage in talks directly with the top management. Also at times, they talk with customers to gauge what they like or dislike about the products and services offered by the company.
Hence, when brokers rate a particular company’s stock, their judgment can be relied upon. Naturally, when an analyst upgrades a stock, you can easily depend on that.
However, just depending on broker upgrades is not the correct way to build your investment portfolio. You should also take into consideration other factors to ensure solid returns.
The Winning Strategy
The following screen will help you in your search for potential winners:
Broker Rating Upgrades (4 weeks): The screen selects stocks that have witnessed broker rating upgrades 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: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.
VGM Score equal to 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 (Buy) offer the best upside potential.
Here are five of the 14 stocks that made it through the screen:
Headquartered in Santa Paula, CA, Calavo Growers, Inc. (CVGW - Free Report) markets and distributes avocados, prepared avocados, and other perishable foods to food distributors, produce wholesalers, supermarkets, convenience stores, and restaurants across the globe. The company’s earnings are projected to rise 14.4% year over year for fiscal 2017. The stock has witnessed 28.6% upward revisions in broker ratings over the past four weeks.
Brookings, SD-based Daktronics Inc. (DAKT - Free Report) designs, manufactures, and sells a range of electronic display systems and related products worldwide. Its fiscal 2017 earnings are estimated to jump 540% year over year. The stock has witnessed 33.3% upward revision in broker ratings over the past four weeks.
Hawaiian Holdings, Inc. (HA - Free Report) , headquartered in Honolulu, HI, engages in the scheduled air transportation of passengers and cargo. For 2016, the company’s earnings are expected to grow 68.7% year over year. The stock has witnessed 10.7% upward revision in broker ratings over the past four weeks.
Finisar Corporation , based in Sunnyvale, CA, provides optical subsystems and components for data communication and telecommunication applications internationally. The company’s earnings are projected to rise 205.3% year over year for fiscal 2017. The stock has witnessed 15.8% upward revision in broker ratings over the past four weeks.
Houston, TX -based McDermott International, Inc. offers engineering, procurement, construction and installation, and module fabrication services for upstream field developments worldwide. For 2016, the company’s earnings are anticipated to rise 34.8% year over year. The stock has witnessed 12% upward revision in broker ratings over the past four weeks.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
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.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
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5 Stocks with Upgraded Broker Ratings Worth Investing
With 2016 drawing to a close, you should have your investment objectives for the next year in place. Overall, market sentiments have been fairly positive in 2016 so far (other than a slight bump in the first half) and the same is likely to continue next year.
Therefore, this is the right time to add a few great stocks to your portfolio. But selecting stocks from the vast investment universe can be a daunting task. For this, you will have to painstakingly go through the fundamentals of every company and try to place them against the current economic background to figure out how it may fare as an investment.
One way to cut this task out is to follow broker recommendation. Brokers have far more insight into what’s happening in a particular company as they directly communicate with the management. Further, they have a deeper understanding of the overall industry.
In addition, brokers thoroughly research a company’s publicly available documents, attend conference calls and engage in talks directly with the top management. Also at times, they talk with customers to gauge what they like or dislike about the products and services offered by the company.
Hence, when brokers rate a particular company’s stock, their judgment can be relied upon. Naturally, when an analyst upgrades a stock, you can easily depend on that.
However, just depending on broker upgrades is not the correct way to build your investment portfolio. You should also take into consideration other factors to ensure solid returns.
The Winning Strategy
The following screen will help you in your search for potential winners:
Broker Rating Upgrades (4 weeks): The screen selects stocks that have witnessed broker rating upgrades 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: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.
VGM Score equal to 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 (Buy) offer the best upside potential.
Here are five of the 14 stocks that made it through the screen:
Headquartered in Santa Paula, CA, Calavo Growers, Inc. (CVGW - Free Report) markets and distributes avocados, prepared avocados, and other perishable foods to food distributors, produce wholesalers, supermarkets, convenience stores, and restaurants across the globe. The company’s earnings are projected to rise 14.4% year over year for fiscal 2017. The stock has witnessed 28.6% upward revisions in broker ratings over the past four weeks.
Brookings, SD-based Daktronics Inc. (DAKT - Free Report) designs, manufactures, and sells a range of electronic display systems and related products worldwide. Its fiscal 2017 earnings are estimated to jump 540% year over year. The stock has witnessed 33.3% upward revision in broker ratings over the past four weeks.
Hawaiian Holdings, Inc. (HA - Free Report) , headquartered in Honolulu, HI, engages in the scheduled air transportation of passengers and cargo. For 2016, the company’s earnings are expected to grow 68.7% year over year. The stock has witnessed 10.7% upward revision in broker ratings over the past four weeks.
Finisar Corporation , based in Sunnyvale, CA, provides optical subsystems and components for data communication and telecommunication applications internationally. The company’s earnings are projected to rise 205.3% year over year for fiscal 2017. The stock has witnessed 15.8% upward revision in broker ratings over the past four weeks.
Houston, TX -based McDermott International, Inc. offers engineering, procurement, construction and installation, and module fabrication services for upstream field developments worldwide. For 2016, the company’s earnings are anticipated to rise 34.8% year over year. The stock has witnessed 12% upward revision in broker ratings over the past four weeks.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
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
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »