For Immediate Release
Chicago, IL – July 16, 2020 – Stocks in this week’s article are Avis Budget Group CAR, Century Aluminum Company CENX, Diebold Nixdorf DBD, Asbury Automotive Group ABG and Big Lots BIG.
5 Stocks Looking Promising on New Broker Upgrades
At the time of designing their portfolio of stocks, investors solely aim at raking in the bucks, irrespective of the surrounding conditions. However, the task seems onerous as picking the perfect bets from a plenty of options in the market is never easy. Choice of improper stocks can adversely impact his/her returns, thereby ruining the very objective of investing the hard-earned money in the highly unpredictable stock market.
Brokers to the Rescue
To combat the above uncertainty, investors more often than not rely on the guidance provided by brokers who are deemed experts equipped with thorough knowledge on the field. Brokers, irrespective of their types (sell-side, buy-side or independent), do an in-depth research on the stocks covered by them.
To that end, they attend company conference calls, interview management personnel and minutely study the company’s publicly-available documents among other things. Brokers revise their earnings estimates for the concerned stock after carefully examining the pros and cons of an event.
In view of such well-assorted information at their disposal, it is in the best interest of investors to be guided by brokers’ discretion and the direction of their estimate revisions. Naturally, their stock-related actions (upgrade or downgrade) serve as an invaluable factor as far as fixing the target price of a stock (s) is concerned.
Top Line to be Considered as Well
While we discussed the bottom line in detail, the top line (revenue portion) cannot be ignored. Actually, 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 lackluster demand for travel (which will hurt travel-focused companies). To address the top-line concerns, we 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/1004979/5-stocks-that-look-promising-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.
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Contact: Jim Giaquinto
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Avis Budget Group, Inc. (CAR): Free Stock Analysis Report
Big Lots, Inc. (BIG): Free Stock Analysis Report
Diebold Nixdorf, Incorporated (DBD): Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report
Century Aluminum Company (CENX): Free Stock Analysis Report
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