As the U.S. economy continues to face sticky inflation and softening job growth, the chances of the Federal Reserve cutting interest rates are high now. Alternatively, tariffs, supply-chain pressures and uneven business investment are weighing on growth. Thus, it is difficult for retail investors to interpret market signals and generate solid returns.
One way to cut short this task is to follow brokers’ recommendations. In this regard, stocks such as Illumina, Inc. ILMN, Commercial Metals Company CMC and Newmont Corporation NEM are worth considering.
Brokers develop informed perspectives on companies through direct engagement with senior management, detailed analysis of public disclosures and active participation in earnings calls. Their broad sector knowledge allows them to evaluate a company’s fundamentals within the wider economic and competitive landscape, offering valuable context on potential stock performance.
Hence, when a broker upgrades a stock, it is typically driven by new information, an earnings surprise, improving industry conditions, margin expansion, balance-sheet progress or a valuation that has become more attractive relative to growth. Since brokers update models based on fresh guidance, channel checks and revised assumptions, an upgrade can capture a turning point earlier than the broad market consensus.
But a broker’s upgrade is only one input, not a decision-making anchor. Sustainable long-term returns require investors to weigh multiple factors, including fundamental strength, valuation, industry dynamics and personal risk checks.
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 Diego, CA-based Illumina provides sequencing and array-based solutions for genetic and genomic analysis. ILMN’s portfolio of sequencing platforms represents a family of systems designed to deliver industry-leading productivity, cost-efficiency and accuracy in NGS (next-generation sequencing) technology.
ILMN’s 2025 earnings are expected to soar 92.2% year over year. Illumina, which currently sports a Zacks Rank #1, has witnessed a 5% upward revision in broker ratings over the past four weeks.
Commercial Metals, based in Irving, TX, manufactures, recycles and markets steel and metal products, related materials and services. CMC provides these through a network of facilities that includes seven electric arc furnace ("EAF") mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the United States and Poland.
Commercial Metals’ fiscal 2026 earnings are projected to surge 87.5% on a year-over-year basis. CMC, sporting a Zacks Rank #1 at present, has witnessed an 8.3% upward revision in broker ratings over the past four weeks.
Based in Perrysburg, OH, Newmont is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia and Ghana. NEM’s operating segments are North America, South America, Australia and Africa.
Newmont’s 2025 earnings are expected to jump 74.1% year over year. NEM, currently sporting a Zacks Rank #1, has witnessed a 4.8% 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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Illumina, Inc. (ILMN): Free Stock Analysis Report Newmont Corporation (NEM): Free Stock Analysis Report Commercial Metals Company (CMC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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