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Zacks.com Featured Highlights Include: Delek, Marathon Petroleum, Archer Daniels, Manitowoc And Phillips 66

Published 06/18/2018, 10:31 PM
Updated 07/09/2023, 06:31 AM

For Immediate Release

Chicago, IL – June 19, 2018 - Stocks in this week’s article Delek US Holdings Inc. (NYSE:DK) , Marathon Petroleum Corp. (NYSE:MPC) , Archer Daniels Midland Co. (NYSE:ADM) , Manitowoc Company, Inc. (NYSE:MTW) and Phillips 66 (NYSE:PSX) .

5 Stocks Stealing the Limelight After Broker Rating Upgrades

While designing their portfolio, an investor may end up making a wrong choice. This can be due to a lack of expertise in identifying outperformers from a plethora of stocks on the market at any point of time.

Choice of improper stocks can adversely impact investors’ returns, thereby ruining the very objective of investing their hard-earned money in the highly unpredictable stock market. In a bid to avoid such a scenario, investors, more often than not rely on guidance from proper channels.

Broker Advice – The Savior

In the field of investing, brokers are deemed to be experts, equipped with thorough knowledge. Brokers, irrespective of their types (sell-side, buy-side or independent), have at their disposal a lot more information on a company and its prospects than individual investors.

They go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Broker opinion should thus act as a valuable guide for investors while deciding on their course of action (buy, sell or hold) on a particular stock.

Be Guided by Earnings Estimate Revisions

Since brokers indulge in meticulous research, the question of their actions being arbitrary/out of the blue does not arise. The direction of estimate revisions serves as an important pointer regarding the price of a stock. In fact, a rating upgrade normally leads to stock price appreciation and vice versa.

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Given the expertise of brokers in investment matters, it is natural for investors to believe that there is a solid reason/logic behind brokers improving their recommendation on a particular stock. In fact, a rating upgrade generally leads to stock price appreciation and vice versa. Estimates can move north for a number of reasons – favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario.

To take care of the earnings performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the last four weeks.

Revenues Performance – A Key Pointer

According to many market watchers, a revenue beat is more creditable for a company than a mere earnings outperformance, especially in an environment of revenue weakness due to macroeconomic headwinds like a strong dollar or lackluster demand for travel (which will hurt travel-focused companies). Therefore, one must take the top-line performance into consideration as well while formulating a winning strategy. We have included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/308202/5-stocks-stealing-the-limelight-after-broker-rating-upgrades

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

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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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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

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.

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The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report

Delek US Holdings, Inc. (DK): Free Stock Analysis Report

Phillips 66 (PSX): Free Stock Analysis Report

Marathon Petroleum Corporation (MPC): Free Stock Analysis Report

Archer Daniels Midland Company (ADM): Free Stock Analysis Report

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