Stock markets have been experiencing significant volatility of late. This is largely because of the ongoing trade war, which has also led to expectations of economic slowdown and rising inflation. As such, the Federal Reserve has kept interest rates steady. In such an uncertain environment, retail investors face significant challenges in selecting the right stocks and achieving strong returns.
One way to cut short this task is to follow brokers’ recommendations. In this regard, stocks like Urban Outfitters, Inc. URBN, Inogen, Inc. INGN and Southwest Gas Holdings, Inc. SWX are worth buying.
As brokers directly communicate with top management, they have more insight into what is happening in a particular company. They assess a company’s publicly available documents and even attend conference calls. Brokers have more understanding of the overall sector and industry. They place company fundamentals against the current economic backdrop to determine how a particular stock will fare as an investment.
When brokers upgrade a stock, one can easily rely on their judgment. Yet, depending on broker upgrades is not enough to build your investment portfolio. A few other factors should be taken into account to ensure steady returns.
Selecting the Winning Strategy
We have a screening strategy that will help in your search for 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 last 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 or 2: Despite good or bad market conditions, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) 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 Consider
Philadelphia, PA-based Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gift products. URBN’s merchandise is generally sold directly to consumers through stores, catalogs, call centers and e-commerce platforms.
Urban Outfitters’ fiscal 2026 earnings are expected to rise 20% year over year. URBN, which currently carries a Zacks Rank #2, has witnessed a 9.1% upward revision in broker ratings over the past four weeks.
Headquartered in Goleta, CA, Inogen is a medical technology business primarily focusing on respiratory health. INGN develops, manufactures and markets innovative respiratory health products, including portable oxygen concentrators used to deliver supplemental LTOT to patients suffering from chronic respiratory conditions and the Simeox product for airway clearance treatment.
INGN’s 2025 earnings are projected to grow 24.3% on a year-over-year basis. Inogen, carrying a Zacks Rank #2 at present, has witnessed a 25% upward revision in broker ratings over the past four weeks.
Based in Las Vegas, NV, Southwest Gas is a regulated utility that provides natural gas services. SWX makes deliveries of natural gas under a priority system established by state regulatory commissions.
Southwest Gas’ 2025 earnings are expected to increase 18.4% year over year. SWX, presently sporting a Zacks Rank #1, has witnessed a 14.3% 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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Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Southwest Gas Corporation (SWX): Free Stock Analysis Report Inogen, Inc (INGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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