Investor sentiments have been bullish of late on the back of solid third-quarter earnings performance. While the government shutdown and resulting blackout of economic data are concerns, investors seem to be optimistic about the overall health of the economy. In September, the Federal Reserve lowered interest rates amid a continued deterioration in the labor market. Amid such a backdrop, retail investors face massive challenges in picking the right stocks and generating robust returns.
One way to cut short this task is to follow brokers’ recommendations. In this regard, stocks such as Roku, Inc. ROKU, Universal Health Services, Inc. UHS and Atlassian Corporation TEAM are worth considering for investment.
Brokers gain valuable insights into companies through direct engagement with senior management, analysis of public disclosures and participation in earnings calls. Their broad sector perspective enables them to assess a company’s fundamentals within the wider economic landscape, offering a more informed view of potential stock performance.
However, while a broker’s upgrade can be a helpful signal, it should not be the sole basis for investment decisions. Achieving sustainable, long-term returns requires investors to consider a comprehensive set of factors beyond broker recommendations.
Selecting the Winning Strategy
We have a screening strategy that may help you identify 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 past 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 (Strong Buy) or 2 (Buy): Despite good or bad market conditions, stocks with a Zacks Rank #1 or 2 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.
3 Stocks With Upgraded Broker Ratings to Bet on
San Jose, CA-based Roku is the leading TV streaming platform provider in the United States, Canada and Mexico based on hours streamed. It operates through two reportable segments: Platform and Devices.
Roku’s 2025 earnings are expected to soar 134.8% year over year. ROKU, which currently carries a Zacks Rank #2, has witnessed a 6.7% upward revision in broker ratings over the past four weeks.
Universal Health Services, based in King of Prussia, PA, owns and operates (through its subsidiaries) acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers. UHS, through its subsidiaries, operates more than 355 inpatient acute care hospitals and 60 outpatient and other facilities located in 39 states, Washington, DC, the United Kingdom and Puerto Rico.
Its 2025 earnings are projected to surge 27.6% on a year-over-year basis. Universal Health Services, sporting a Zacks Rank #1 at present, has witnessed 5% upward revision in broker ratings over the past four weeks.
Based in Sydney, Australia, Atlassian is a global leader and innovator in the enterprise collaboration and workflow software space. TEAM offers a suite of cloud-based software solutions that help organizations collaborate and manage their workforce, such that the teams work better together.
Its fiscal 2026 earnings are expected to rise 16.3% year over year. TEAM, currently carrying a Zacks Rank #2, has witnessed a 3.6% 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
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Universal Health Services, Inc. (UHS): Free Stock Analysis Report Atlassian Corporation PLC (TEAM): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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