Markets have been extremely volatile over the past several days, mainly due to inflation and geopolitical concerns. Hence, it is not easy for an individual investor to pick stocks on his own and gain from them amid the current situation.
Wondering how to choose the right stocks? One way is to follow rating upgrades by brokers. Thus, in this regard, stocks like Polaris Inc. PII, Sibanye Stillwater Limited SBSW, Crown Holdings Inc. CCK, Watsco Inc. WSO and Knowles Corporation KN are worth investing in.
As brokers directly communicate with the top management, they have in-depth knowledge about what’s happening in a particular company. Also, they diligently go through the company’s publicly available documents and even attend conference calls.
Brokers have a thorough understanding of the overall sector and industry too. They place the company fundamentals against the current economic backdrop to determine how the stock will fare as an investment.
So, when brokers upgrade a stock, you can rely on their judgment. But solely depending on broker upgrades is not a good way to build your investment portfolio. Several other factors should be taken into consideration to ensure steady returns.
Selecting the Winning Strategy
We have a screening strategy that will help you in your search for 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 last four weeks.
Current Price greater than $5: The stocks must be trading 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 or 2: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) 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.
Here are the five stocks that qualified the screening:
Medina, MN-based Polaris designs, engineers, manufactures and markets power sports vehicles globally. PII operates in five segments: ORV/Snowmobiles, Motorcycles, Global Adjacent Markets, Aftermarket and Boats.
The company’s earnings for 2022 are expected to grow 12.2%. Polaris, currently carrying a Zacks Rank #2, has witnessed a 12.5% upward revision in broker ratings over the past four weeks.
Headquartered in South Africa, Sibanye Stillwater is a precious metals mining company in South Africa, the United States, Zimbabwe, Canada and Argentina. SBSW produces gold and platinum group metals as well as by-products like iridium, ruthenium, nickel, copper and chrome.
Sibanye Stillwater’s 2022 earnings are projected to jump 41%. The stock, carrying a Zacks Rank #2 at present, has witnessed a 25% upward revision in broker ratings over the past four weeks.
Crown Holdings is a leading global manufacturer of packaging products for consumer goods. Based in Philadelphia, PA, CCK makes a wide variety of steel and aluminum cans for food, beverage, household and other consumer products and metal vacuum closures, steel crowns and caps.
The company’s earnings for 2022 are expected to rise 6.9%. Crown Holdings, which currently carries a Zacks Rank #2, has witnessed a 9.1% upward revision in broker ratings over the past four weeks.
Watsco, based in Miami, FL, is the largest distributor of Heating, ventilation and air conditioning equipment, as well as related parts and supplies (HVAC/R) in North America. WSO’s air conditioning and heating equipment are sold to the residential replacement market, the commercial market and residential new construction market.
The company’s earnings for 2022 are anticipated to increase 3.3%. Watsco, currently carrying a Zacks Rank #2, has witnessed a 12.5% upward revision in broker ratings over the past four weeks.
Itasca, IL-based Knowles is a premier provider of advanced micro-acoustic, audio processing and precision device solutions. Leveraging its leading position in MEMS (micro-electro-mechanical systems) microphones and strong capabilities in audio processing technologies, KN optimizes audio systems and improves user experience in mobile, ear and IoT applications.
Knowles’ earnings for fiscal 2022 are expected to increase 9.5%. The stock, sporting a Zacks Rank #1 at present, has witnessed a 33.3% 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
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Watsco, Inc. (WSO) : Free Stock Analysis Report
Crown Holdings, Inc. (CCK) : Free Stock Analysis Report
Polaris Inc. (PII) : Free Stock Analysis Report
Knowles Corporation (KN) : Free Stock Analysis Report
Sibanye Gold Limited (SBSW) : Free Stock Analysis Report
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