Zacks.com featured highlights include: eXp, American States Water, ICU Medical, Universal Technical Institute and SFL

Zacks Equity Research

For Immediate Release

Chicago, IL – April 2, 2020 - Stocks in this week’s article are eXp World Holdings Inc. EXPI, American States Water Company AWR, ICU Medical, Inc. ICUI, Universal Technical Institute, Inc. UTI and SFL Corporation Ltd. SFL.

New Analyst Coverage Brings 5 Stocks in Focus Amid Coronavirus Crisis

Coronavirus fears have been dominating the stock-market headlines of late, resulting in accelerated selloffs. Now, as global stock markets are experiencing record levels of volatility, investors may look for stocks that recently received new analyst coverage. The logic behind this is that analysts don’t add a stock to their coverage randomly. New coverage on a stock is usually the result of huge investor focus on it or its promising prospects.

Interestingly, stocks typically see an incremental upward price movement with new analyst coverage compared to what they witness with continuation of existing analyst coverage. Of course, the price movement depends on the recommendations from the new analysts. Positive recommendations — Buy and Strong Buy — lead to a significant positive incremental price reaction than Strong Sell, Sell or Hold recommendations.

Moreover, if an analyst gives a new recommendation on a company that has limited or no analyst coverage, investors start paying more attention to it. As analysts almost always initiate coverage with a positive recommendation. Also, any new information attracts portfolio managers to build a position in the stock.

However, one should preferably look for the average change in broker recommendation rather than a single recommendation change. Then again, an upgrade, an initiation or even increased coverage is equally important.

Keeping this mind, it’s a good strategy to focus on the number of analyst recommendations that have increased over the last few weeks.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/848935/new-analyst-coverage-brings-5-stocks-in-focus-amid-coronavirus

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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