For Immediate Release
Chicago, IL – December 18, 2018 - Stocks in this week’s article are American Airlines Group (NASDAQ:AAL) , Baker Hughes, a GE company (NYSE:BHGE) , Dana Inc. (NYSE:DAN) , Cincinnati Bell (NYSE:CBB) and Brookdale Senior Living (NYSE:BKD) .
Recent Broker Rating Upgrades Add Luster to These 5 Stocks
“Strike while the iron is hot” is appropriate in all walks of life and the investing world is no exception. Investors, after all, are putting their hard-earned money into a stock and expectations of handsome returns are quite obvious.
However, the uncertainties associated with the investment world and the plethora of stocks flooding the market make the task a daunting one.
Moreover, with time at a premium these days, it is next to impossible for investors to keep track of market movements to identify opportune moment(s) for buying or offloading a particular stock to maximize returns. Therefore, guidance from proper channels is a must.
Time for Some Broker Advice
The experts in the investing world are brokers. Generally, three types of brokers (sell-side, buy-side and independent) are present in the investment world, with sell-side analysts being the most common. They are employed by various brokerage firms to provide unbiased opinion to investors on the stocks under their coverage after thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
All types of brokers indulge in conducting research of the stocks under their coverage. They have access to much detailed information on a company. Toward this end, they attend company conference calls/presentations and scrutinize every detail available publicly before advising investors. Naturally, broker advice acts as an invaluable guide for investors in their bid to garner the maximum from their portfolios.
Direction of Earnings Estimates: An Invaluable Guide
Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. The estimate revisions serve as an important pointer regarding the price of a stock.
For example, an earnings outperformance by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings often lead to stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy.
Making the Most of Broker Guidance
The above write-up clearly suggests that by following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we have designed a screen to shortlist stocks based on improving analyst recommendation and upward revisions in earnings estimates over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy effective.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/343231/recent-broker-rating-upgrades-add-luster-to-these-5-stocks
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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Strong Stocks that Should Be in the News
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Cincinnati Bell Inc (CBB): Free Stock Analysis Report
Dana Incorporated (DAN): Free Stock Analysis Report
Brookdale Senior Living Inc. (BKD): Free Stock Analysis Report
Baker Hughes, a GE company (BHGE): Free Stock Analysis Report
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