Zacks.com featured highlights GeoPark, Build-A-Bear, AAR and Adtalem Global Education
For Immediate Release
Chicago, IL – October 5, 2023 – Stocks in this week’s article are GeoPark Ltd. GPRK, Build-A-Bear Workshop, Inc. BBW, AAR Corp. AIR and Adtalem Global Education Inc. ATGE.
4 Stocks to Buy as New Analysts Initiate Coverage
New analyst coverage can indeed be highly beneficial for investors and plays a significant role in the financial markets. Analysts often have extensive knowledge and expertise in specific industries or sectors. Their research and analysis can provide investors with valuable insights into a company's financial health, growth prospects, competitive position and industry trends. This information can be difficult for individual investors to obtain on their own.
Recently, several stocks, including GeoPark Ltd., Build-A-Bear Workshop, Inc., AAR Corp. and Adtalem Global Education Inc. have attracted the attention of analysts, signaling potential value and growth opportunities for 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 four out of 11 stocks that passed the screen:
GeoPark: Based in Bogotá, Colombia, this company engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina and Ecuador. The company’s shares have gained 8.8% in the past three months versus the industry’s 7.2% increase.
GPRK — a Zacks Rank #1 (Strong Buy) company — currently flaunts a VGM Score of B. This helps to identify stocks with the most attractive value, growth and momentum. The earnings per share (EPS) estimate for 2023 has increased to $2.83 from $2.66 over the past 30 days. This depicts analysts’ optimism about the company. You can see the complete list of today’s Zacks #1 Rank stocks here.
Build-A-Bear Workshop: This St. Louis, MO-based company operates as a multi-channel retailer of plush animals and related products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company’s shares have gained 30.1% in the past three months against the industry’s 14.6% decrease.
BBW — a Zacks Rank #1 company — currently flaunts a VGM Score of A. The EPS estimate for 2023 has increased to $3.60 from $3.52 over the past 30 days. The estimated figure indicates 16.9% year-over-year growth.
AAR Corp.: Wood Dale, IL-based AAR Corp., incorporated in 1951, provides various products and services to the aviation and defense industries worldwide. The company’s shares have gained 30.6% year to date compared with the industry’s 4.6% increase.
AIR — a Zacks Rank #2 (Buy) company — currently flaunts a VGM Score of B. The EPS estimate for fiscal 2024 has increased to $3.47 from $3.46 over the past seven days. The estimated figure indicates 21.3% year-over-year growth.
Adtalem Global Education: Based in Chicago, IL, this company is a leading healthcare education provider and workforce solutions innovator. The company’s shares have gained 25.8% in the past three months compared with the industry’s 18.2% rise.
ATGE — a Zacks Rank #2 company — surpassed the Zacks Consensus Estimate in the last four trailing quarters, the average being 22%. The EPS estimate for 2023 has increased to $4.31 from $4.28 over the past 60 days.
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/2160133/4-stock-to-buy-as-new-analysts-initiate-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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See 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
AAR Corp. (AIR) : Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
Geopark Ltd (GPRK) : Free Stock Analysis Report
Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report
