5 Stocks Brokers Adore Even as Economic Uncertainty Lingers

Volatility is likely to persist in the U.S. stock market going forward due to uncertainty over the timing of the next interest rate cut, new tariffs and ongoing geopolitical tensions. This will make it difficult for individual investors to design a winning portfolio of stocks.

The choice of improper stocks can adversely impact returns, thereby ruining the very objective of investing hard-earned money in the highly unpredictable stock market. So, what's the way forward? One way is to adhere to broker advice. Brokers have an in-depth understanding of stocks, great knowledge of the industry and a grasp over the broader economy.

Broker-friendly stocks like BrightSpring Health Services BTSG, GXO Logistics GXO, BrightView Holdings BV, Bloomin' Brands BLMN and Archer Daniels Midland Company ADM are worth having a look at for healthy returns.

We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy a well-rounded one.

Screening Criteria

# (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).

% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).

Price-to-Sales = Bot%10 (The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio).

Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).

Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).

Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).

Com/ADR/Canadian= Com (This eliminates the ADR and Canadian stocks).

Here are five of the 10 stocks that made it through the screen:

BrightSpring operates as a home and community-based healthcare services platform in the United States. BrightSpring is delivering significant improvements in care quality across its diversified service portfolio, boosting stakeholders' and investors' sentiment. In Home Health, over 80% of the branches are now rated 4 stars or higher, with the 60-day hospitalization rate continuing to decline.

BrightSpring’s 2025 expected earnings growth rate is 55.4%. The Zacks Consensus Estimate for BTSG’s 2025 revenues indicates a rise of 9.1% over 2024. The stock carries a Zacks Rank #2 (Buy) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

GXO Logistics, a pure-play contract logistics provider, is headquartered in Greenwich, CT.  Increased e-commerce, automation and outsourcing are likely to aid the company’s prospects. Cost-cutting efforts are also boosting GXO’s bottom-line performance. 

The company beat the Zacks Consensus Estimate in three of the last four quarters and missed once, with the average beat being 3.9%. The Zacks Consensus Estimate for GXO’s 2025 revenues indicates a rise of 9.9% from 2024 levels. GXO currently carries a Zacks Rank #3 (Hold).

BrightView Holdings is the United States’ largest commercial landscaper. The company designs, creates, and maintains landscapes and provides efficient and comprehensive snow and ice removal services. BrightView’s initiatives to improve landscape development for commercial properties are expected to improve the company’s profit margins.

The company beat the Zacks Consensus Estimate in three of the last four quarters and missed once, with the average beat being 4.1%. The Zacks Consensus Estimate for BV’s 2025 earnings indicates a rise of 10.5% from 2024 levels. BrightView currently has a Zacks Rank #3.

Bloomin' Brands' performance is benefiting from off-premise channels, remodeling efforts and technology upgrades. Emphasis on menu simplifications (based on customer feedback), refinement of marketing and promotional strategy, and strategic Ziosk partnership are further tailwinds.

The company beat the Zacks Consensus Estimate in three of the last four quarters and missed once, with the average beat being 0.9%. The Zacks Consensus Estimate for BV’s 2025 earnings has been revised 1.7% upward over the past 60 days. Bloomin' Brands currently has a Zacks Rank #3.

Archer Daniels', a Chicago, IL-based agricultural product company, leadership in critical global trends, such as flexitarian diets, nutrition, and sustainable materials, has contributed to its momentum. Its focus on investing in assets and technological capabilities to serve customers efficiently is likely to be a significant growth driver. 

ADM has been making progress on its three strategic pillars — optimize, drive and growth. Archer Daniels surpassed the Zacks Consensus Estimate for earnings in two of the past four quarters and missed the mark on the other two occasions. ADM currently carries a Zacks Rank #3.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

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.

Click here to sign up for a free trial to the Research Wizard today.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research