For Immediate Release
Chicago, IL – April 20, 2020 – Stocks in this week’s article are Gibraltar Industries, Inc. ROCK, PJT Partners Inc. PJT, ICU Medical, Inc. ICUI, eXp World Holdings Inc. EXPI and Innovative Industrial Properties, Inc. IIPR.
Buy These 5 Stocks on New Analyst Coverage Amid Coronavirus
The hopes of reopening businesses and improving prospects of a vaccine amid the coronavirus-induced dismal economic scenario have been making markets volatile.
Now, as global stock markets are experiencing record levels of volatility, investors may look for stocks that recently received new analyst coverage. The logic behind this is that 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 continuation of existing analyst coverage. Of course, the price movement depends on the recommendations from the new analysts. Positive recommendations — Buy and Strong Buy — lead to a significant positive incremental price reaction than Strong Sell, Sell or Hold recommendations.
Moreover, if an analyst gives a new recommendation on a company that has limited or no analyst coverage, investors start paying more attention to it. As analysts almost always initiate coverage with a positive recommendation. Also, any new information attracts portfolio managers to build a position in the stock.
However, one should preferably look for the average change in broker recommendation rather than a single recommendation change. Then again, an upgrade, an initiation or even increased coverage is equally important.
Keeping this mind, it’s a good strategy to focus on the number of analyst recommendations that have increased 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/876062/buy-these-5-stocks-on-new-analyst-coverage-amid-coronavirus
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ICU Medical, Inc. (ICUI) : Free Stock Analysis Report
Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report
Innovative Industrial Properties, Inc. (IIPR) : Free Stock Analysis Report
PJT Partners Inc. (PJT) : Free Stock Analysis Report
Exp World Holdings, Inc. (EXPI) : Free Stock Analysis Report
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