5 Broker-Liked Stocks to Keep an Eye on Amid the Current Market Swings

Volatility has been widely prevalent of late in the broader equity markets. Despite AI behemoth NVIDIA’s stellar quarterly performance, AI-bubble concerns continue to weigh on the market. Moreover, uncertainty remains whether the Federal Reserve will cut rates at its meeting next month.

The better-than-expected September jobs report, delayed due to the government shutdown, has further lowered expectations of a rate cut in December. In view of these factors, market movement has been hugely erratic. In this scenario, designing an appropriate portfolio for healthy returns is not an easy task for individual investors. So what is the way out?

One way could be to pay heed to advice from brokers. Brokers obtain valuable insights into companies by engaging directly with senior management, analyzing public disclosures and participating in earnings calls, which helps them provide well-informed recommendations to investors. Following this route, broker-adored stocks like Par Pacific Holdings PARR, BrightSpring Health Services BTSG,The Goodyear Tire & Rubber Company GT, American Airlines AAL and Allegiant Travel Company ALGT should be monitored 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 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:

Based in Houston, 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 more than 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 the other occasion. 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

BrightSpring: The company operates as a home and community-based healthcare services platform in the United States. BTSG is delivering significant improvements in care quality across its diversified service portfolio, boosting stakeholders' and investors' sentiment. In Home Health, more than 80% of its 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 100%. The Zacks Consensus Estimate for BTSG’s 2025 revenues indicates a rise of 12.8% over 2024. The firm sports a Zacks Rank #1 at present.

The Goodyear Tire & Rubber Company is one of the largest tire manufacturing companies in the world. In addition to selling tires, GT provides other rubber-related chemicals for various applications. The buyout of Cooper Tire, Goodyear Forward plan and new product launches enhance the prospects of the company.

GT has outpaced the Zacks Consensus Estimate for earnings in two of the past four quarters, missing the mark on one occasion and matching estimates in the remaining quarter, with the average being a negative 6.5%. Goodyear currently carries a Zacks Rank #3 (Hold).

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. 

It is expected to report a 4.3% increase in 2025 revenues from 2024’s actuals. AAL currently carries a Zacks Rank #3.

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. 

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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