Zacks
Zacks.com featured highlights Rev Group, CVR Energy, Cardinal Health, Commercial Vehicle and Archer Daniels Midland
Zacks Equity Research
7 min read

In This Article:

For Immediate Release

Chicago, IL – October 17, 2023 – Stocks in this week’s article are Rev Group REVG, CVR Energy CVI, Cardinal Health CAH, Commercial Vehicle Group CVGI and Archer Daniels Midland Co. ADM.

5 Stocks Brokers Favor Despite Ongoing Uncertainty

Geopolitical tensions led by the sudden outbreak of the Israel-Hamas war have added to the already prevalent uncertain scenario. The rise in oil prices after Saudi Arabia and Russia extended voluntary supply cuts has also been one of the reasons for the turbulent scenario. Despite the headwinds, the solid September jobs report has lifted spirits as far as the U.S. equity markets are concerned. The better-than-expected report has gone a long way in reducing rate hike fears.

Given this topsy-turvy backdrop, investors would look to have stocks favored by brokers in their watchlist. This is because brokers are deemed to be experts in the field of investing. Therefore, investors would like to have stocks like Rev Group, CVR Energy, Cardinal Health, Commercial Vehicle Group and Archer Daniels Midland Co. in their respective portfolios for attractive returns.

Why Broker Advice Is Important

As brokers indulge in extensive research on stocks under their coverage, they have access to detailed information on a company. They attend company conference calls/presentations and scrutinize every piece of document available in the public domain before instructing investors.

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. Naturally, their estimate revisions serve as an important pointer regarding the price of a stock.

Given this extensive know-how, brokers are deemed to be experts in the field of investing, equipped with thorough knowledge and a clear insight into the nitty gritty of the investment world. Paying heed to such well-researched information is, therefore, advisable for investors to avoid the unfortunate scenario of one’s hard-earned money invested in stock markets going down the drain.

Making the Most of Broker Knowledge

The above write-up clearly suggests that by following broker actions, one can arrive at a promising basket of stocks. Keeping this in mind, we have designed a screen to shortlist stocks based on improving analyst recommendations and upward earnings estimate revisions over the last four weeks.

Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is considered in designing a winning portfolio of stocks. The price/sales ratio takes care of the company’s top line, making the strategy extremely effective.

Terms and Privacy Policy
Your Privacy Choices
Utah Privacy Notice
More Info

Recommended Stories