February has begun on a subdued note. The U.S. stocks witnessed an AI-driven sell-off as investors repriced lofty expectations. Several software stocks fell on fears that AI tools could erode pricing power and disrupt incumbents, with concerns also growing that hyperscaler AI capex may slow, weighing on chips and data-center suppliers. Overall, markets demanded clearer monetization and disciplined spending.
Against such a backdrop, it is difficult for retail investors to decide which stocks to pick for generating solid returns over time. One way to cut short this task is to follow brokers’ recommendations. In this regard, stocks such as Jacobs Solutions Inc. J, Envista Holdings Corporation NVST and Tapestry, Inc. TPR are worth considering.
Brokers form informed views by engaging with senior management, scrutinizing public disclosures, and participating in earnings calls. With broad sector expertise, they place a company’s fundamentals in the wider economic and competitive context, helping investors gauge how the stock may perform.
When a broker upgrades a stock, it is often driven by fresh evidence—updated guidance, channel checks, or revised assumptions—flowing into a refreshed model. While some inputs may be less visible to the broader market, upgrades can occasionally flag an inflection point before it is fully reflected in consensus expectations.
That said, a broker upgrade is only one input, not an investment thesis. Durable long-term returns typically come from triangulating multiple factors: business quality, valuation, industry structure, catalysts and risks, and the investor’s own risk tolerance, time horizon, and portfolio constraints.
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
Dallas, TX-based Jacobs Solutions is one of the leading providers of professional, technical and construction services to industrial, commercial and governmental clients. J operates two reportable segments, Infrastructure & Advanced Facilities and PA Consulting.
Jacobs Solutions’ fiscal 2026 earnings are expected to rise 16.5% year over year. J, which currently carries a Zacks Rank #2, has witnessed a 6.3% upward revision in broker ratings over the past four weeks.
Envista Holdings, based in Brea, CA, is a global family of more than 30 dental brands, including Nobel Biocare, Ormco, DEXIS and Kerr. NVST’s diversified portfolio of solutions covers a broad range of dentists' clinical needs for diagnosing, treating and preventing dental conditions as well as improving the aesthetics of the human smile.
NVST’s 2026 earnings are projected to surge 17.7% on a year-over-year basis. Envista Holdings, sporting a Zacks Rank #1 at present, has witnessed an 18.5% upward revision in broker ratings over the past four weeks.
Based in New York, Tapestry is the designer and marketer of fine accessories and gifts for women and men. TPR offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches.
Tapestry’s fiscal 2026 earnings are expected to rise 19% year over year. TPR, currently sporting a Zacks Rank #1, has witnessed a 5% upward revision in broker ratings over the past four weeks.
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Tapestry, Inc. (TPR): Free Stock Analysis Report Envista Holdings Corporation (NVST): Free Stock Analysis Report Jacobs Solutions Inc. (J): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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