Zacks.com featured highlights include: ABM Industries, AAR Corp., Boise Cascade, Owens & Minor and Covenant Logistics

Zacks Equity Research
·5-min read

For Immediate Release

Chicago, IL – October 2, 2020 – Stocks in this week’s article are ABM Industries Incorporated ABM, AAR Corp. AIR, Boise Cascade Company BCC, Owens & Minor, Inc. OMI and Covenant Logistics Group, Inc. CVLG.

5 Broker-Favorite Stocks to Note Post-Recent Analyst Upgrades

With the third-quarter earnings season being round the corner, investors would look to include stocks in their respective portfolios, which have the potential to surpass earnings expectations in the to-be-reported quarter. This is because an earnings beat generally leads to stock price appreciation.

Investors are after all shelling out their hard-earned savings in the stock market. Naturally, they would want to generate handsome returns from their portfolio. However, the task of designing one’s portfolio with prospective outperformers is anything but easy. In fact, equity market tricks are not easy to master with a plethora of stocks flooding the space at any point of time. The job becomes even more difficult when one tries to select a winning portfolio without proper guidance.

Choice of improper stocks can adversely impact his/her returns, thereby ruining the very objective of investing the hard-earned money in the highly unpredictable stock market.

Broker Advice: The Way Forward?

To avoid such an unfortunate scenario, investors, more often than not rely on the guidance provided by brokers who are deemed experts in the field, equipped with thorough knowledge and a clear insight into the nitty gritties of the investment world.

They have at their disposal a lot more substantial information on a company and its prospects than individual investors.  Brokers directly communicate with the top management. They also thoroughly study the documents available in the public domain and attend conference calls.  Since brokers meticulously follow the stocks under 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 yardstick regarding the price of a stock.

To take care of the earnings performance, we designed a screen based on better broker recommendations and upward estimate revisions over the last four weeks.

Top-Line Growth: A Key Catalyst

However, designing a strategy, based solely on the bottom line is unlikely to lead to a positive approach. Actually, according to many market watchers, a revenue beat is more creditable for a company than a mere earnings outperformance, especially in an environment of revenue weakness due to macroeconomic headwinds. To address the top-line concerns, we included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1069638/5-brokerfavorite-stocks-to-note-post-recent-analyst-upgrades

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

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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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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Owens Minor, Inc. (OMI) : Free Stock Analysis Report
 
ABM Industries Incorporated (ABM) : Free Stock Analysis Report
 
AAR Corp. (AIR) : Free Stock Analysis Report
 
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
 
Covenant Transportation Group, Inc. (CVLG) : Free Stock Analysis Report
 
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