5 Stocks With Upgraded Broker Ratings Worth A Look Right Now

It’s not an easy task for an individual investor to pick stocks and gain from it, given so many fundamental and technical aspects that need to be considered for identifying the potential winners. This is where seeking guidance from "experts in the field" comes in handy.

Since brokers are in direct communication with companies, they have deeper insight into what’s happening in there. Hence, following what the majority of brokers are saying about a stock helps in understanding its potential easily.

Brokers analyze fundamentals of the company and place them against the current economic backdrop to figure out how the stock will fare as an investment. Further, they have greater understanding of the overall industry and economy.

Specifically, brokers analyze the company’s publicly available financial statements, attend conference calls and communicate directly with top management. They even talk to customers to understand what they like or dislike about the products and services offered by the company.

So, there’s comprehensive study behind the rating of a broker on a company’s stock. When a broker upgrades a stock, you can easily rely on it.

Nevertheless, it’s not right to solely depend on broker upgrades to build your investment portfolio. You should take into consideration certain other factors to ensure strong returns.

Choosing the Winning Strategy

We have a screening strategy that will help 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 seven stocks that made it through the screen:

Headquartered in El Segundo, CA, Big 5 Sporting Goods Corporation (NASDAQ:BGFV) operates as a sporting goods retailer in western U.S. The company has a long-term earnings growth rate of 9%. The stock witnessed 6.7% upward revision in broker ratings over the past four weeks.

Hanover, MD-based Ciena Corporation (NYSE:CIEN) provides equipment, software, and services supporting transport, switching, aggregation, service delivery, and management of voice, video, and data traffic on communications networks worldwide. Over the longer term, the company’s earnings are projected to grow at the rate of 15.8%. The stock witnessed 6.3% upward revision in broker ratings over the past four weeks.

NN, Inc. (NASDAQ:NNBR) , headquartered in Johnson City, TN, manufactures high precision bearing components, industrial plastic products, and precision metal components. The company has a long-term earnings growth rate of 20%. The stock witnessed 7.2% upward revision in broker ratings over the past four weeks.

Greenwood Village, CO-based Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) develops, operates, and franchises casual-dining and fast-casual restaurants. The company has a long-term earnings growth rate of 10.3%. The stock witnessed 5.6% upward revision in broker ratings over the past four weeks.

Nutrisystem, Inc. (NASDAQ:NTRI) , based in Fort Washington, PA, provides weight management products and services for women and men. Over the longer term, the company’s earnings are projected to grow at the rate of 18.3%. The stock witnessed 20% 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 back testing 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

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Ciena Corporation (CIEN): Free Stock Analysis Report

NN, Inc. (NNBR): Free Stock Analysis Report

NutriSystem Inc (NTRI): Free Stock Analysis Report

Red Robin Gourmet Burgers, Inc. (RRGB): Free Stock Analysis Report

Big 5 Sporting Goods Corporation (BGFV): Free Stock Analysis Report

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Zacks Investment Research