Stock markets have been experiencing significant volatility of late. This is largely because of geopolitical tensions and the ongoing trade war. These near-term risks have led to expectations of economic slowdown and rising inflation. 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 Exelixis, Inc. EXEL, Lyft, Inc. LYFT and Kinross Gold Corporation KGC are worth considering.
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 Buy
Alameda, CA-based Exelixis is an oncology-focused biotechnology company that primarily focuses on the discovery, development and commercialization of new drugs for the treatment of difficult-to-treat cancers. Currently, EXEL has four approved drugs in its portfolio.
Exelixis’ 2025 earnings are expected to rise 32% year over year. EXEL, which currently carries a Zacks Rank #2, has witnessed a 5% upward revision in broker ratings over the past four weeks.
Lyft, based in San Francisco, CA, was founded in 2012. LYFT operates multimodal transportation networks in the United States and Canada.
LYFT’s 2025 earnings are projected to grow 15.8% on a year-over-year basis. Lyft, carrying a Zacks Rank #2 at present, has witnessed a 2.5% upward revision in broker ratings over the past four weeks.
Based in Toronto, Canada, Kinross is involved in the exploration and operation of gold mines. KGC ranks among the top 10 gold mining companies globally.
Kinross’ 2025 earnings are expected to jump 69.1% year over year. KGC, presently carrying a Zacks Rank #2, has witnessed an 8.3% 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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Kinross Gold Corporation (KGC): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report Lyft, Inc. (LYFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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