Investor sentiments are bullish of late despite tariff policies resulting in higher inflation. Last month, the Federal Reserve lowered interest rates for the first time this year amid a continued deterioration in the labor market. Amid such a backdrop, retail investors face massive challenges in picking the right stocks and generating robust returns.
One way to cut short this task is to follow brokers’ recommendations. In this regard, stocks such as Amicus Therapeutics, Inc. FOLD, Micron Technology Inc. MU, and General Dynamics Corp. GD are worth considering for investment.
Brokers often develop deeper insights into companies by engaging directly with senior management, reviewing public filings, and participating in earnings calls. Their sector-wide perspective enables them to assess company fundamentals within the broader context of economic conditions, offering a clearer view of how a stock may perform as an investment.
That said, a broker’s stock upgrade can be a useful signal but should not serve as the sole basis for portfolio decisions. Achieving consistent, long-term returns requires investors to weigh factors beyond broker recommendations.
Selecting the Winning Strategy
We have a screening strategy that may help you identify potential winners.
Broker Rating Upgrades (Four Weeks) of 1% or More: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the past four weeks.
Current Price Greater Than $5: The stocks must trade 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 (Strong Buy) or 2 (Buy): Despite good or bad market conditions, stocks with a Zacks Rank #1 or 2 have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.
VGM Score of 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, offer the best upside potential.
3 Stocks With Upgraded Broker Ratings to Bet On
Princeton, NJ-based Amicus Therapeutics is a global patient-centric biotechnology company. FOLD is engaged in discovering, developing and commercializing various novel treatments for patients with rare metabolic diseases.
Amicus Therapeutics’ 2025 earnings are expected to jump 29.2% year over year. FOLD, which currently carries a Zacks Rank #2, has witnessed a 7.7% upward revision in broker ratings over the past four weeks.
Micron, based in Boise, ID, is one of the leading worldwide providers of semiconductor memory solutions. MU’s mission is to be the most efficient and innovative global provider of semiconductor memory solutions.
MU’s fiscal 2026 earnings are projected to surge 100% on a year-over-year basis. Micron, sporting a Zacks Rank #1 at present, has witnessed a 2.7% upward revision in broker ratings over the past four weeks.
Based in Reston, VA, General Dynamics engages in mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation. GD operates through four segments — Aerospace, Combat Systems, Marine Systems and Technologies.
General Dynamics’ 2025 earnings are expected to rise 11.7% year over year. GD, currently carrying a Zacks Rank #2, has witnessed a 4.8% upward revision in broker ratings over the past four weeks.
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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
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpGeneral Dynamics Corporation (GD) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
Amicus Therapeutics, Inc. (FOLD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
