For Immediate Release
Chicago, IL – September 24, 2021 – Stocks in this week’s article are Best Buy Co., Inc. BBY, Peabody Energy Corporation BTU, Citi Trends, Inc. CTRN, Caleres, Inc. CAL and Commercial Metals Company CMC.
5 Broker-Friendly Stocks to Buy Amid Current Market Struggles
The crisis triggered by fears over the potential collapse of a debt-ridden Evergrande Group has shaken the global stock markets. As a result of this cascading effect of the troubles in China's property market, major indexes in the United States continue to suffer.
Per a CNBC report, the S&P 500, the tech-heavy Nasdaq composite and the Dow Jones Industrial Average dipped 1.7%, 2.2% and 1.8%, respectively, on Sep 20. While the S&P 500's performance on Sep 20 was the worst (on a daily basis) since May 12, the Dow posted its biggest one-day loss since Jul 19.
The Evergrande crisis apart, U.S. investors are worried about the rapid spread of the Delta variant of COVID-19, which is threatening to derail economic growth witnessed prior to the transmission of this deadly strain.
However, irrespective of the prevalent market conditions, investors strive to design a winning basket of stocks. They are after all putting their hard-earned money into stocks. Amid the existing uncertainties, it is almost impossible for individual investors to come up with a promising portfolio of stocks without proper guidance. Therefore, it is in the best interest of investors to seek advice from "experts in the field."
Who Are the Experts & Why?
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.
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. To take care of the earnings performance, we designed a screen based on improving broker recommendations and upward estimate revisions over the last four weeks.
Do not Ignore the Top Line
However, designing a strategy based solely on the bottom line is unlikely to result in a rewarding approach. Actually, according to many market watchers, a revenue beat is more creditable for a company than a mere earnings outperformance. 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/1799926/5-broker-friendly-stocks-to-buy-amid-the-current-market-crisis
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.
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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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