5 Broker-Adored Stocks to Keep an Eye on for Strong Returns

The picture emerging from the third-quarter 2025 earnings season has been a huge positive for the broader equity markets, despite the prolonged government shutdown. The recent rate cut by the Federal Reserve marked the second time this year that rates have been reduced. Relatively lower rates will increase borrowing and boost market liquidity, driving deal volumes and trading opportunities. However, concerns related to the increasing valuation of AI firms persist.

Given this volatile scenario, choosing appropriate stocks for a portfolio to achieve impressive returns may not be possible for individual investors. One way forward is to pay heed to broker advice. Brokers are considered experts in investing. Brokers gain valuable insights into companies through direct interactions with senior management, careful analysis of public disclosures and active participation in earnings calls, enabling them to make informed recommendations for investors. Broker-friendly stocks like Par Pacific Holdings PARR, General Motors GM, American Airlines AAL, Allegiant Travel Company ALGT and Dana Incorporated DAN should be monitored for healthy returns.

We have designed a screen to shortlist stocks based on improving analyst recommendations and upward estimate revisions over the last 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 Parameters    

# (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 concerning this ratio).

Current 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:

Par Pacific operates an integrated energy platform spanning refining, retail and logistics. With 219,000 barrels per day of refining capacity, extensive storage and transportation assets, and over 100 fuel and convenience store locations, the company serves key western U.S. markets.

PARR beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed on one occasion. The average beat was 77.5%. The company, which balances conventional fuel supply with emerging decarbonization initiatives, while also holding a significant interest in natural gas production, currently sports a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here

General Motors remains the top-selling automaker in the United States, holding a 17% market share in the third quarter of 2025. Robust vehicle offerings, a growing software and services business, progress in China restructuring, and strong liquidity are expected to support General Motors’ growth.

GM beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters by an average of 9%. The Zacks Consensus Estimate for current-year earnings has been revised upward by 8% over the past 60 days. The company currently sports a Zacks Rank #1. 

American Airlines is based in Fort Worth, TX. The gradual increase in air travel demand (particularly leisure) has been aiding AAL. Low fuel costs are driving the bottom line. American Airlines is constantly looking to add routes and broaden its network. 

American Airlines is expected to report a 1% increase in 2025 revenues from 2024’s actuals. AAL currently carries a Zacks Rank #3 (Hold).

Allegiant Travel is gaining from a buoyant air travel demand scenario. Efforts to upgrade its fleet are praiseworthy as well. ALGT aims to end 2025 with a fleet size of 123.

ALGT’s earnings surpassed estimates in three of the last four quarters and missed the mark once. The average beat was 16%. Allegiant currently carries a Zacks Rank #3. 

Dana Incorporated provides thermal-management products for the automotive sector. Dana supplies major motion/drive systems for vehicles and machines. The ongoing accelerated cost-reduction measures and efficiency gains are helping Dana to offset the effects of tariffs and inflation.

Dana currently carries a Zacks Rank #3. The Zacks Consensus Estimate for current-quarter earnings has been revised upward by 84.2% over the past 60 days.

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.

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

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