Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    +1.76 (+2.16%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0793
    -0.0036 (-0.33%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2625
    -0.0013 (-0.10%)
     
  • USD/JPY

    151.4020
    +0.1560 (+0.10%)
     
  • Bitcoin USD

    70,868.23
    +1,555.07 (+2.24%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Zacks.com featured highlights Employers Holdings, CVR Energy, Oil States International, Archrock, and U.S. Silica Holdings

For Immediate Release

Chicago, IL – March 27, 2023 – Stocks in this week’s article are Employers Holdings, Inc. EIG, CVR Energy, Inc. CVI, Oil States International, Inc. OIS, Archrock, Inc. AROC and U.S. Silica Holdings, Inc. SLCA.

5 Stocks for Higher Returns on New Analyst Coverage

Investors depend on research work provided by analysts as they fear that lack of information while exploring on their own might trigger errors. Here, analysts play a vital intermediary role as they have extensive access to relevant data.

Meanwhile, massive volatility has been dominating the stock market headlines of late. Given the situation, investors may look for stocks that recently received new analyst coverage. The logic behind this is that analysts do not add a stock to their coverage randomly. New coverage on a stock is usually the result of huge investor focus on it or its prospects.

Employers Holdings, Inc., CVR Energy, Inc., Oil States International, Inc., Archrock, Inc. and U.S. Silica Holdings, Inc. are some stocks that have seen new analyst coverage lately and are therefore expected to attract investors' attention.

Coverage initiation of a stock by analyst(s) usually portrays higher investor inclination. Investors, on their part, often assume that there is something special in a stock to attract analysts to cover it. In other words, they believe that a company coming under the microscope definitely has some value.

Obviously, stocks are not randomly chosen to cover. New coverage on a stock usually reflects a reassuring future envisioned by the analyst(s). At times, increased investor focus on a stock motivates analysts to take a closer look at it. After all, who doesn’t love to produce something that is already in demand? Hence, we often find that analysts’ ratings on newly added stocks are more favorable than their ratings on continuously covered stocks.

It is needless to say, the average change in broker recommendation is more preferable than a single recommendation change.

Influence Stock Price

The price movement of a stock is generally a function of the recommendations on it from new analysts. Stocks typically see an upward price movement with a new analyst coverage compared to what is witnessed with a rating upgrade under an existing coverage. Positive recommendations — Buy and Strong Buy — generally lead to a significantly positive price reaction than Hold recommendations. On the contrary, analysts hardly initiate coverage with a Strong Sell or Sell recommendation.

Now, if an analyst gives a new recommendation on a company that has very little or no existing coverage, investors start paying more attention to it. Also, any new information attracts portfolio managers to build a position in the stock.

So, it’s a good strategy to bet on stocks that have seen increased analyst coverage.

Below, we have selected five stocks that have seen increased analyst coverage over the past few weeks.

Here are five of the nine stocks that passed the screen:

Employers Holdings: Based in Reno, NV, EIG operates in the commercial property and casualty insurance industry, primarily in the United States.

EIG currently carries a Zacks Rank #1 (Strong Buy). The stock has gained 18.6% over the past six months, outperforming the industry’s 8% growth. Earnings estimates for 2023 indicate 5.8% growth from the year-ago period. Earnings estimates for 2023 have increased to $3.10 per share from $3.00 per share over the past 30 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

CVR Energy: Based in Sugar Land, TX, CVR Energy is an independent refiner and marketer of high-value transportation fuels and, through a limited partnership, a producer of ammonia and urea ammonia nitrate fertilizers.

CVI currently carries a Zacks Rank #1. The stock has gained 17.5% over the past six months, outperforming the industry’s 17.2% growth. Earnings estimates for 2023 have increased to $3.45 per share from $2.80 per share over the past 30 days.

Oil States International: Based in Houston, TX, OIS provides engineered capital equipment and products for the energy, industrial and military sectors worldwide.

OIS currently carries a Zacks Rank #2 (Buy). The stock has gained 107.1% over the past six months, outperforming the industry’s 22.5% growth. Earnings estimates for 2023 indicate 333.3% growth from the year-ago period. Earnings estimates for 2023 have increased to 35 cents per share from 30 cents per share over the past seven days.

Archrock: Houston, TX-based AROC operates as an energy infrastructure company in the United States.

AROC currently carries a Zacks Rank #2. The stock has gained 45.7% over the past six months, outperforming the industry’s 35.3% growth. Earnings estimates for 2023 indicate 110.7% growth from the year-ago period. Earnings estimates for 2023 have increased to 59 cents per share from 33 cents per share over the past 30 days.

U.S. Silica Holdings: Based in Katy, TX, U.S. Silica Holdings makes and markets commercial silica, a specialized mineral, to a variety of attractive end markets in the United States.

SLCA currently carries a Zacks Rank #3 (Hold). The stock has gained 2.8% over the past six months, underperforming the industry’s 19.8% growth. That said, earnings estimates for 2023 have increased to $1.72 per share from $1.27 per share over the past 30 days. Earnings estimates for 2023 indicate 45.8% growth from the year-ago period.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2070066/5-stocks-for-higher-returns-on-new-analyst-coverage

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 >>.

Follow us on Twitter:  https://www.twitter.com/zacksresearch

Join us on Facebook:  https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

Visit: https://www.zacks.com/

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer. 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CVR Energy Inc. (CVI) : Free Stock Analysis Report

Oil States International, Inc. (OIS) : Free Stock Analysis Report

Employers Holdings Inc (EIG) : Free Stock Analysis Report

U.S. Silica Holdings, Inc. (SLCA) : Free Stock Analysis Report

Archrock, Inc. (AROC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement