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Zacks.com featured highlights include: Cardinal Health, Builders FirstSource, AmerisourceBergen, AutoNation and Party City

Zacks Equity Research

For Immediate Release

Chicago, IL – July 30, 2019 - Stocks in this week’s article are Cardinal Health CAH, Builders FirstSource BLDR, AmerisourceBergen Corp. ABC, AutoNation AN and Party City Holdco PRTY.

Recent Analyst Upgrades Add Shine to These 5 Stocks

The Q2 earnings season is in full swing. Despite headwinds like the Sino–U.S. trade tensions, the current reporting cycle has seen a healthy proportion of companies reporting better-than-expected earnings.

Generally, an earnings beat by a company leads to appreciation in its stock price. Given this backdrop, investors would like to add outperformers to their respective portfolios for healthy returns.

However, the task is far from easy with a plethora of companies present in the market. Moreover, the complexities associated with the stock market makes it even more difficult for individual investors to select outperformers in their portfolios in the absence of proper guidance.

Broker Advice - An Invaluable Guide

The requisite guidance to design a winning portfolio comes from brokers. Brokers invest a lot of time in researching stocks under their coverage. Such investment specialists attend conference calls, company presentations and also interact with management.

Brokers revise their earnings estimates after carefully examining the pros and cons of an event for the concerned stock. Naturally, their stock related actions (upgrade or downgrade) serve as an invaluable guide as far as fixing target price of stock(s) is concerned. Therefore, it is prudent for investors to pay heed to broker advice in order to design a winning portfolio

Out of the three types of brokers (sell-side, buy-side and independent), sell-side analysts are the most common. They are employed by various brokerage firms to provide unbiased opinion on stocks. Meanwhile, buy-side analysts are employed by hedge funds, mutual funds and others while independent analysts directly sell their reports to investors.

Making the Most of Broker Opinions

By following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we have designed a screen to shortlist stocks based on improving analyst recommendation and upward earnings estimate revisions over the last four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy foolproof.

For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/452572/recent-analyst-upgrades-add-shine-to-these-5-stocks

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

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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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

 

 

 

                                                                                    


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AutoNation, Inc. (AN) : Free Stock Analysis Report
 
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
 
Party City Holdco Inc. (PRTY) : Free Stock Analysis Report
 
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
 
AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report
 
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