Zacks.com featured highlights Dream Finders Homes, Vista Energy and Inspired Entertainment
For Immediate Release
Chicago, IL – February 12, 2024 – Stocks in this week’s article are Dream Finders Homes, Inc. DFH, Vista Energy, S.A.B. de C.V. VIST and Inspired Entertainment, Inc. INSE.
3 Stocks for Better Returns as New Analysts Initiate Coverage
The initiation of coverage by new analysts can offer significant benefits to investors and wield a considerable influence on financial markets. Analysts often boast specialized knowledge and proficiency in specific industries or sectors. By conducting meticulous research and analysis, they provide investors with invaluable insights into a company's financial health, growth prospects, competitive position, and industry trends. These insights are often difficult for individual investors to obtain on their own.
Dream Finders Homes, Inc., Vista Energy, S.A.B. de C.V. and Inspired Entertainment, Inc. are three stocks that have recently come under the analytical spotlight, signaling potential opportunities for judicious investors.
Analysts don't randomly choose which stocks to cover. Their decision is typically driven by significant investor interest or promising prospects associated with a particular stock.
An interesting observation is that when stocks receive new analyst coverage, they often experience gradual upward price movements compared to those already covered by analysts. The magnitude of this price movement is influenced by the recommendations made by the new analysts. Positive recommendations like "Buy" and "Strong Buy" tend to result in more substantial positive price reactions than "Strong Sell," "Sell," or "Hold" recommendations.
When an analyst provides a new recommendation for a company with limited or no prior analyst coverage, investors pay increased attention to the stock. Additionally, portfolio managers may become interested in building positions in such stocks due to the fresh information.
Rather than focusing solely on a single recommendation change, it is advisable to consider the average change in broker recommendations. Upgrades, initiations, and increased coverage by multiple analysts carry equal significance in assessing a stock's potential.
To create a prudent investment strategy, it's worthwhile to concentrate on the number of analyst recommendations that have increased in recent weeks. This approach can offer valuable insights into the overall sentiment and potential trajectory of a stock, helping investors make well-informed decisions.
Here are three out of the seven stocks that passed the screen:
Dream Finders Homes: This Jacksonville, FL-based homebuilder’s shares have gained 155.2% over the past year, outperforming the industry’s 57.8% rise.
DFH — a Zacks Rank #1 (Strong Buy) company — has an expected revenue growth rate of 12.2% year over year for 2024. DFH’s earnings per share (EPS) estimates for 2024 have increased to $2.81 from $2.62 over the past 60 days. Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average being 131.6%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Vista Energy: Headquartered in Mexico City, this firm specializes in the exploration and extraction of oil and natural gas across Latin America. Shares of VIST have gained 90.5% over the past year against the industry’s 7.2% decline.
VIST presently has a Zacks Rank #3 (Hold). The company’s earnings per share surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed in the other two, the average being 5.1%. Again, it has an impressive VGM Score of A. This helps to identify stocks with the most attractive value, growth and momentum.
Inspired Entertainment: Based in New York, this gaming technology firm provides content, platforms, and various other products and services to regulated lottery, betting and gaming operators globally. Shares of INSE have lost 41.6% over the past year, against the industry’s 33.9% rise.
INSE currently carries a Zacks Rank #3. Although shares have underperformed the industry, the solid EPS growth rate depicts its prospects. The EPS estimates for 2024 indicate 33.3% year-over-year growth. Again, it has an impressive VGM Score of A.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2223897/3-stocks-for-better-returns-as-new-analysts-initiate-coverage
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Inspired Entertainment, Inc. (INSE) : Free Stock Analysis Report
Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR (VIST) : Free Stock Analysis Report
Dream Finders Homes, Inc. (DFH) : Free Stock Analysis Report
