For Immediate Release
Chicago, IL - February 20, 2019 - Stocks in this week's article are Abercrombie & Fitch Co. ANF , Bloomin' Brands BLMN , DICK'S Sporting Goods DKS , ABM Industries ABM and Avnet AVT .
5 Stocks in the Limelight Due to Recent Broker Rating Upgrades
A high proportion of companies have reported better-than-expected earnings per share in the curren t report ing cycle.
Generally, an earnings beat by a company leads to an appreciation in its stock price. Given this backdrop, investors would like to add outperformers to their respective portfolios for healthy returns.
However, with a plethora o f earnings reports flooding the market during the reporting cycle, pinpointing outperformers is by no means an easy task for individual investors. In the absence of proper guidance, identifying a winning stock is akin to searching for 'a needle in a haystack', for an investor. The proper guidance, in this respect, comes from brokers, who are deemed to be experts, equipped with vast knowledge and know how as far as the field of investing is concerned.
Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide unbiased opinion to investors after thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
Brokers, irrespective of their type, attend company conference calls/presentations and scrutinize every detail available publicly before advising investors about their course of action (buy, sell or hold a stock). In view of their expertise and profound understanding of stocks and the investing world, it is a no-brainer that investors should pay heed to broker advice to generate the maximum from their portfolios.
Earnings Estimate Revisions
Since brokers follow the stocks in their coverage closely, they revise their earnings estimates on a stock after carefully examining the pros and cons of an event for the concerned company. Their action is certainly not arbitrary or illogical. Thus, estimate revisions serve as an important guide regarding the price of a stock.
For example, an earnings beat by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings results 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. 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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/355408/5-stocks-in-limelight-due-to-recent-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.
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Contact: Jim Giaquinto
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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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ABM Industries Incorporated (ABM): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research