This year has begun on a subdued note. The U.S. markets have 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.
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 Etsy, Inc. ETSY, CBRE Group CBRE and Associated Banc-Corp ASB are worth investing in.
Brokers develop informed views by meeting senior management, analyzing public disclosures and engaging in earnings calls. With a broad sector perspective, they frame a company’s fundamentals within the wider economic and competitive landscape, helping investors assess how the stock might perform.
When a broker upgrades a stock, it’s often prompted by new evidence, like revised guidance, channel checks or updated assumptions, feeding into a refreshed valuation model. Some of these inputs may not be immediately visible to the broader market, so upgrades can sometimes signal an inflection point before they are fully reflected in consensus expectations.
Even so, an upgrade is only one data point, not a complete 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
Brooklyn, NY-based Etsy operates as a leading e-commerce service provider. ETSY has established a strong international presence, with core operations spanning the United States, United Kingdom, Canada, Germany, Australia and France.
Etsy’s 2026 earnings are expected to jump 141% year over year. ETSY, which currently sports a Zacks Rank #1, has witnessed a 3.1% upward revision in broker ratings over the past four weeks.
CBRE Group, based in Dallas, TX, is a commercial real estate services and investment firm, offering a wide range of services to tenants, owners, lenders and investors. CBRE’s services include facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.
CBRE’s 2026 earnings are projected to grow 15.4% on a year-over-year basis. CBRE Group, carrying a Zacks Rank #2 at present, has witnessed a 7.7% upward revision in broker ratings over the past four weeks.
Based in Green Bay, WI, Associated Banc-Corp delivers a wide range of banking and non-banking products and services. ASB serves customers through nearly 200 banking offices located across Wisconsin, Illinois and Minnesota, while also offering commercial and financial services in Indiana, Michigan, Missouri, New York, Ohio, and Texas.
Associated BancCorp’s 2026 earnings are expected to rise 6.9% year over year. ASB, currently carrying a Zacks Rank #2, has witnessed an 8.3% upward revision in broker ratings over the past four weeks.
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Associated Banc-Corp (ASB): Free Stock Analysis Report Etsy, Inc. (ETSY): Free Stock Analysis Report CBRE Group, Inc. (CBRE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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