The year 2024 was a remarkable one for stock market investors, with the S&P 500 Index soaring almost 24%. This was driven by the resilient macroeconomic environment and robust corporate earnings. As such, it might become difficult for retail investors to choose stocks independently and generate solid returns this year.
To do this, one needs to understand the company fundamentals and try to place them against the current economic background to figure out how the stock may fare as an investment. One way to cut short this task is to follow brokers’ recommendations. Stocks like Ralph Lauren Corp. RL, Plains All American Pipeline, L.P. PAA, Brinker International, Inc. EAT, EverQuote, Inc. EVER and American Airlines Group Inc. AAL are worth betting on.
As brokers directly communicate with top management, they have more insight into what is happening in a particular company. They assess a company’s publicly available documents and even attend conference calls. Brokers have more understanding of the overall sector and industry. They place company fundamentals against the current economic backdrop to determine how a particular stock will fare as an investment.
When brokers upgrade a stock, one can easily rely on their judgment. Yet, depending on broker upgrades is not enough to build your investment portfolio. A few other factors should be taken into account to ensure steady returns.
Selecting the Winning Strategy
We have a screening strategy that will help 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 trade 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: Despite good or bad market conditions, 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 or 2, offer the best upside potential.
5 Stocks With Upgraded Broker Ratings
Based in New York, Ralph Lauren is a major designer, marketer and distributor of premium lifestyle products. RL offers products in apparel, footwear, accessories, home furnishings and other licensed product categories.
RL’s fiscal 2025 earnings are expected to rise 14% year over year. Ralph Lauren, which carries a Zacks Rank #2, has witnessed a 6.3% upward revision in broker ratings over the past four weeks.
Headquartered in Houston, TX, Plains All American, a master limited partnership (MLP), is involved in the transportation, storage, terminalling and marketing of crude oil, natural gas, natural gas liquids and refined products in the United States and Canada. PAA has operations in the Permian Basin, South Texas/Eagle Ford area, Rocky Mountain and Gulf Coast in the United States, and Manito, South Saskatchewan, Rainbow in Canada.
Plains All American’s 2025 earnings are projected to grow 13.3% on a year-over-year basis. The company, sporting a Zacks Rank #1 at present, has witnessed a 5.6% upward revision in broker ratings over the past four weeks.
Based in Dallas, TX, Brinker International owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. Chili’s is a preeminent leader in the bar & grill category of casual dining, while Maggiano’s is a full-service, national, casual dining Italian restaurant brand.
Brinker International’s fiscal 2025 earnings are expected to rise 44.2% year over year. EAT, carrying a Zacks Rank #2, has witnessed a 10.5% upward revision in broker ratings over the past four weeks.
EverQuote, based in Cambridge, MA, is an online insurance marketplace. EVER operates an online marketplace for consumers shopping for auto, home and renters and life insurance.
EverQuote’s 2025 earnings are projected to grow 10.7% on a year-over-year basis. The company, sporting a Zacks Rank #1 at present, has witnessed a 12.5% upward revision in broker ratings over the past four weeks.
Based in Fort Worth, TX, American Airlines is one of the largest airlines internationally. AAL’s primary business is to provide passenger and cargo services.
American Airlines’ 2025 earnings are projected to soar 39.7% on a year-over-year basis. The company, sporting a Zacks Rank #1 at present, has witnessed a 19.1% upward revision in broker ratings over the past four weeks.
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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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Plains All American Pipeline, L.P. (PAA) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
Ralph Lauren Corporation (RL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
EverQuote, Inc. (EVER) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
