5 Broker-Liked Stocks to Monitor Amid the Ongoing Volatility

The recent coordinated military strikes by the United States and Israel on Iran have significantly altered geopolitical dynamics, bringing Middle Eastern regional tensions to a critical level. This recent geopolitical crisis has added another layer to the volatile scenario.

In fact, after a strong start to the year in January, volatility resurfaced on Wall Street in February, largely driven by investor concerns regarding the sustainability of the artificial intelligence or AI trade. The highly elevated valuations of AI stocks and uncertainty surrounding the durability of large-scale AI investments contributed to a sharp downturn in the technology sector. The sell-offs in cryptos, especially Bitcoin, have further added to the uncertain scenario.

Despite this turbulent scenario, investors should not turn their backs on investing. Keeping an eye on broker-loved stocks like Arrow Electronics ARW, Gold.com GOLD, Cross Country Healthcare CCRN, AMN Healthcare Services AMN, and PENN Entertainment PENN appears prudent.

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 Criteria

# (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.

To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:

Price-to-Sales = Bot%10: The lower the ratio the better, companies meeting this criteria are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.

Price greater than 5: A stock trading below $5 will not likely create significant interest for most 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 if one judges by market capitalization.

Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.

Here are five of the 10 stocks that made it through the screen:

New York-based Arrow Electronics is one of the world’s largest distributors of electronic components and enterprise computing products. Arrow’s core strength of providing best-in-class services and easy-to-acquire technologies is expected to bolster growth in the future.

Its recent partnerships underscore Arrow's innovation leadership, including collaboration with .lumen to scale production of AI-powered assistive technology for the visually impaired. The company rides on positive cyclical tailwinds, improving leading indicators across key markets, and strong performance in value-added offerings that enhance competitive differentiation and margin potential.

Arrow Electronics currently sports a Zacks Rank #1 (Strong Buy). ARW has a projected 3-5 year EPS growth rate of 15.2%. The company has an impressive surprise history, with its earnings surpassing the Zacks Consensus Estimate in each of the last four quarters. The average beat is 15.9%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Gold.com is a fully integrated alternative assets platform that offers an extensive range of precious metals, numismatic coins and collectibles to consumers, collectors and institutional clients. GOLD operates through three segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending.

The stock price of GOLD has jumped 83% over the past three months. The company, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 63.1% for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 52.6% over the last 60 days.

Cross Country Healthcare: This talent management and other consultative services provider for healthcare clients is benefiting from the strength in its current relationships, and momentum in home care, physician staffing and education.

CCRN’s home care staffing business is being aided by the rising number of PACE program wins. The physician staffing business is growing on higher billable days and revenue per day sales. Improving operating leverage from volume growth and proactive cost management are driving the bottom line.

Cross Country Healthcare currently carries a Zacks Rank #3 (Hold). CCRN’s earnings missed the Zacks Consensus Estimate in each of four quarters, the average miss being 38.2%.

AMN Healthcare Services' business has evolved beyond traditional healthcare staffing and recruitment services, thereby becoming a strategic total talent solutions partner with its clients. Changes in demand for healthcare services, particularly at acute healthcare hospitals and other inpatient facilities, like skilled nursing facilities, affect the demand for AMN Healthcare’s services. 

AMN Healthcare’s unique MSP is helping the company gain market traction. Notably, the program helps streamline the entire workforce planning process, which facilitates the delivery of improved patient care. This has resulted in a large network of improved patient care and improved efficiency. The company currently carries a Zacks Rank #3.

As one of the leading gaming operators in the United States, PENN Entertainment has built a reputation for consistent strategy execution and strong brand recognition. Over the years, the company has expanded its footprint through targeted acquisitions and divestitures, creating a broad national presence.

PENN Entertainment currently carries a Zacks Rank #3. PENN’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters and missed the mark once, the average beat being 93.6%. 

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

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