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Upgraded Broker Ratings Make These 5 Stocks Worth Betting on

Amid volatile markets and economic slowdown, just a basic fundamental analysis of companies is not enough to zero in on stocks that have the potential of generating solid returns. In such situations, expert advice can help picking the right stocks.

For this, you can simply follow broker rating upgrades. Brokers have a deeper understanding of stocks, sectors and the overall economy. They directly communicate with the top management. They also thoroughly study 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. So, by following broker rating upgrades, you can easily find attractive stocks.

Nonetheless, solely depending on broker upgrades is not prudent. You must take into consideration a few other factors before taking any decision. 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 or 2 offer the best upside potential.

Here are five of the 31 stocks that qualified the screening:

Based in Chicago, IL, Conagra Brands Inc. CAG is one of the leading branded food companies of North America offering premium edible products, with refined focus on innovation. The company’s long-term (three to five years) estimated earnings growth rate is 7%. The stock, currently carrying a Zacks Rank #2, has witnessed 8.3% upward revision in broker ratings over the past four weeks.

Sleep Number Corporation SNBR provides sleep solutions and services. This Minneapolis, MN -based company’s long-term estimated earnings growth rate is 10.1%. The stock, sporting a Zacks Rank #1 at present, has witnessed 14.3% upward revision in broker ratings over the past four weeks.

Headquartered in Winona, MN, Fastenal Company FAST is a wholesale distributor of industrial and construction supplies. Its long-term estimated earnings growth rate is 9%. The stock, currently sporting a Zacks Rank #1, has witnessed 8.3% upward revision in broker ratings over the past four weeks.

Corporate Office Properties Trust OFC is a fully-integrated and self-managed REIT that focuses principally on ownership, management, leasing, acquisition and development of suburban office buildings. This Columbia, MD-based company’s long-term estimated earnings growth rate is 4.4%. The stock, carrying a Zacks Rank #2 at present, has witnessed 18.2% upward revision in broker ratings over the past four weeks.

Headquartered in Omaha, NE, Valmont Industries, Inc. VMI is primarily engaged in the production of fabricated metal products, metal and concrete pole and tower structures, as well as mechanized irrigation systems. Its long-term estimated earnings growth rate is 10.8%. The stock, currently sporting a Zacks Rank #1, has witnessed 25% upward revision in broker ratings over the past four weeks.

Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

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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


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Fastenal Company (FAST) : Free Stock Analysis Report
 
Conagra Brands Inc. (CAG) : Free Stock Analysis Report
 
Valmont Industries, Inc. (VMI) : Free Stock Analysis Report
 
Corporate Office Properties Trust (OFC) : Free Stock Analysis Report
 
Sleep Number Corporation (SNBR) : Free Stock Analysis Report
 
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