For Immediate Release
Chicago, IL – January 10, 2022 – Stocks in this week’s article are Genesco Inc. GCO, Hertz Global Holdings, Inc. HTZ, Suburban Propane Partners, L.P. SPH and Cytek Biosciences, Inc. CTKB.
4 Top Stocks for Higher Returns on New Analyst Coverage
New analyst coverage unearths extensive data on stocks for investors. Analysts are privy to vital information that is crucial for making investment decisions. Hence, they are much relied on, as the lack of information creates chances of misinterpretation (over- or under-valued).
Analysts don’t add a stock to their coverage randomly. New coverage on a stock is usually the result of huge investor focus on it or its promising prospects.
Interestingly, stocks typically see an incremental upward price movement with new analyst coverage compared to what they witness with the continuation of existing analyst coverage. Of course, the price movement depends on recommendations from new analysts. Positive recommendations — Buy and Strong Buy — lead to a significant positive incremental price reaction than Strong Sell, Sell or Hold recommendations.
If an analyst gives a new recommendation on a company that has limited or no analyst coverage, investors start paying more attention to it. Also, any new information attracts portfolio managers to build a position in the stock.
One should preferably look for the average change in broker recommendation rather than a single recommendation change. Then again, an upgrade, initiation or even increased coverage is equally important.
Keeping this in mind, it’s a good strategy to focus on the number of analyst recommendations that have increased over the past few weeks.
Below, we have selected four stocks that have seen increased analyst coverage over the past few weeks.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1849054/4-top-stocks-for-higher-returns-on-new-analyst-coverage?art_rec=quote-stock_overview-zacks_news-ID02-txt-1849054
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Hertz Global Holdings, Inc. (HTZ) : Free Stock Analysis Report
Suburban Propane Partners, L.P. (SPH) : Free Stock Analysis Report
Genesco Inc. (GCO) : Free Stock Analysis Report
Cytek Biosciences, Inc. (CTKB) : Free Stock Analysis Report
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