Zacks.com highlights: Caleres, Bed Bath & Beyond, Ford Motor, American Airlines Group and Chicago Bridge & Iron
For Immediate Release
Chicago, IL – April 3, 2018 - Stocks in this week’s article include: Caleres, Inc. CAL, Bed Bath & Beyond Inc. BBBY, Ford Motor Company F, American Airlines Group Inc. AAL and Chicago Bridge & Iron Company N.V. CBI.
Screen of the Week of Zacks Investment Research:
5 Broker-Friendly Stocks to Fight Ongoing Market Uncertainty
The possibility of a trade war brewing between the United States and China — the world’s two biggest economies — threw 11 S&P 500 sectors into correction territory (decline of at least 10% from the latest peak) late last month. The trigger was the executive memorandum signed by President Trump to impose tariffs on up to $60 billion in Chinese imports targeting the technology, telecommunications and apparel sectors. In response, China proposed a list of 128 U.S. products worth $3 billion as potential retaliation targets.
Expert Advice - A Must in This Scenario
Given the widespread uncertainty, the task of building a portfolio of stocks for handsome returns is a herculean task. Furthermore, with a huge number of stocks available in the market at any point of time, spotting potential outperformers is very tough for individual investors. In the absence of proper guidance, identifying a winning stock is akin to searching for a needle in a haystack.
Additionally, with time at a premium these days, it is next to impossible for investors to go through the extensive process. Given this backdrop, it is in the best interest of investors to seek guidance from “experts in the field." The concerned experts are brokers.
Broker Advice – The Savior
The “experts” in the field of investing are brokers who are equipped with thorough knowledge about the space. Brokers, irrespective of their types (sell-side, buy-side or independent), have at their disposal a lot more information on a company and its prospects than individual investors.
To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Broker opinion should thus act as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock.
Direction of Earnings Estimates: A Winning Pointer
Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. The estimate revisions serve as an important pointer regarding the price of a stock.
For example, an earnings outperformance by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings often lead to stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy.
Making the Most of Broker Opinions
The above write-up clearly suggests that by following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we have designed a screen to shortlist stocks based on improving analyst recommendation and upward revisions in earnings estimates over the last four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy effective.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/297682/5-brokerfriendly-stocks-to-fight-ongoing-market-uncertainty
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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
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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.
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American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Ford Motor Company (F) : Free Stock Analysis Report
Chicago Bridge & Iron Company N.V. (CBI) : Free Stock Analysis Report
Bed Bath & Beyond Inc. (BBBY) : Free Stock Analysis Report
Caleres, Inc. (CAL) : Free Stock Analysis Report
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