In the current volatile markets, a basic fundamental analysis of companies is not enough to zero in on stocks that have the potential to generate solid returns. In such a situation, expert advice helps picking the right stocks. You could simply follow broker rating upgrades, as they have a deeper insight into stocks, the sectors and the overall economy.
Brokers directly communicate with the top management. They also thoroughly study the publicly available documents and attend conference calls.
In addition, brokers scrutinize the fundamentals of companies and place them against the current economic backdrop to find out how the stocks will fare as an investment option. Hence, by following broker rating upgrades, you can easily find attractive stocks.
But solely depending on broker upgrades is not advisable. You must take into consideration a few other factors before adding a stock to your investment portfolio. This way you can ensure steady returns.
Choosing the Winning Strategy
We have a screening strategy that will help you in your search for potential winners:
Broker Rating Upgrades (four weeks) of 1% or more: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the last four weeks.
Current Price greater than $5: The stocks must be trading above $5.
Average 20-day Volume greater than 100,000: A large trading volume guarantees that the stock is easily tradable.
Zacks Rank equal to #1 or 2: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1