For Immediate Release
Chicago, IL – November 10, 2017 - Stocks in this week’s article First Commonwealth Financial Corporation FCF, Strayer Education Inc. STRA, Protagonist Therapeutics, Inc. PTGX, Amtech Systems, Inc. ASYS and Columbia Property Trust, Inc. CXP.
5 Stocks in the Spotlight on New Analyst Coverage
Coverage initiation on a stock by analyst(s) is a decisive tool in the investment circle as it offers critical information on a stock which is of great value to investors. There’s no denying that the lack of consistency in information creates inefficiencies that might result in misinterpretation of stocks.
Initiation of coverage by analysts usually depicts increased investor inclination. Investors, on their part, often assume that there is something in the stock that has attracted analyst attention. In other words, they believe that the company coming under the radar definitely has some value which can be tapped into.
Obviously, stocks are not arbitrarily chosen to cover. New coverage on a stock usually reflects an encouraging future envisioned by the analyst(s). At times, increased investor focus on a stock motivates analysts to take a closer look at it.
However, we have noticed that the average change in broker recommendation is preferred over a single recommendation change.
Analyst Coverage & Price Movement
Interestingly, the price movement is generally a function of the recommendations from new analysts. Stocks typically see an upward price movement with a new analyst coverage compared to what they witness 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 limited 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 over the last few weeks.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/282354/5-stocks-in-the-spotlight-on-new-analyst-coverage
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First Commonwealth Financial Corporation (FCF) : Free Stock Analysis Report
Amtech Systems, Inc. (ASYS) : Free Stock Analysis Report
Strayer Education, Inc. (STRA) : Free Stock Analysis Report
Columbia Property Trust, Inc. (CXP) : Free Stock Analysis Report
Protagonist Therapeutics, Inc. (PTGX) : Free Stock Analysis Report
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