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5 Broker-Loved Stocks to Keep a Tab on Amid Signs of Easing Trade Woes

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After suffering as a result of tariff-related woes, investors breathed a sigh of relief on April 22 on signs of easing trade tensions. President Trump and Treasury Secretary Scott Bessent hinted that the 145% tariffs on Chinese goods could be reduced soon. Bessent believes that the current scenario is “unsustainable.” Trump is also exploring pauses on certain tariffs, particularly on auto imports and some consumer electronics.

The positive developments on the tariff front have resulted in markets being in the green since April 22. With more tariff-related good news expected, markets are likely to gain further in the coming days. Investors would do well to keep an eye on broker-loved stocks like Avis Budget (CAR - Free Report) , ABM Industries (ABM - Free Report) , CVR Energy (CVI - Free Report) , Delek US Holdings (DK - Free Report) and Asbury Automotive Group (ABG - Free Report) in this evolving but brightening scenario.

We have designed a screen 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.

Screening Criteria

# (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).

% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).

Price-to-Sales = Bot%10 (The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio).

Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).

Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).

Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).

Com/ADR/Canadian= Com (This takes out the ADR and Canadian stocks).

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

Headquartered in Parsippany, N.J., Avis Budget operates as a leading vehicle rental operator in North America, Europe and Australasia with an average rental fleet of nearly 695,000 vehicles. Avis Budget benefits from strong demand for car rentals, mainly in North America, driven by changing consumer behavior.

The Zacks Consensus Estimate for current-year earnings and revenues indicates growth of 131% and 1.5%, respectively, from 2024 actuals. CAR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

New York-based ABM Industries is a provider of integrated facility solutions in the United States and other countries. ABM currently carries a Zacks Rank #3. The company has an impressive surprise history, with its earnings surpassing the Zacks Consensus Estimate in each of the last four quarters, the average beat being 9.6%.

ABM launched ELEVATE in 2021. It is designed to drive organic growth and modernize its digital ecosystem. The acquisition of RavenVolt in 2022 strengthened the company’s presence in EV infrastructure and power solutions.

Established in 2006, CVR Energy is a holding company primarily involved in renewable energy, petroleum refining, marketing, and nitrogen fertilizer manufacturing through its stake in CVR Partners. It is committed to developing renewable biofuels and actively participating in the energy transition to reduce carbon emissions.

CVI beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed the mark in the other two, with the average negative earnings surprise being 36%. The company currently carries a Zacks Rank of 3.

Brentwood, TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. DK’s extensive downstream operations within the Permian Basin grant it a fairly significant competitive edge over its peers in the long term.

Delek US Holdings currently carries a Zacks Rank #3. DK beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average beat being 22.3%. 

Asbury’s diversified product mix and multiple streams of income improve its risk profile and position it for top-line growth. The company’s e-commerce platform— Clicklane— is driving growth. Strategic buyouts are helping the auto retailer increase its market share. 

Its investor-friendly moves also instill optimism. Asbury currently carries a Zacks Rank #3. Over the past 60 days, the Zacks Consensus Estimate for ABG’s current-quarter earnings has inched up by 0.3%

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 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 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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