5 Must-Watch Stocks Favored by Brokers as 2H25 Begins

The first half of 2025 was characterized by heightened volatility and uncertainty. President Trump’s sweeping tariffs rattled markets before a partial pause, and the faster-than-expected cooling of inflation led to a recovery. The last couple of months have been favorable for the market, with signs of easing trade tensions and a cooling of the Middle East crisis. 

The abovementioned tailwinds should continue to lift stocks in the second half of the year. Additionally, the optimism related to artificial intelligence should continue in the latter half of the year, buoying stocks, especially technology-related ones. Cooling inflation keeps market watchers optimistic about more than one rate cut (possibly starting in September) in the latter half of 2025. Given these positive developments, monitoring broker-liked stocks such as Cracker Barrel Old Country Store CBRL, BGSF, ArcBest Corporation ARCB, Cardinal Health CAH and AutoNation AN appears prudent as we enter into the second half of 2025.

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).

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

Price greater than 5 (as 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 in terms of market capitalization).

Com/ADR/Canadian= Com (This eliminates the ADR and Canadian stocks).

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

Cracker Barrel is prioritizing menu innovation and pricing to drive growth. The company is introducing offerings like shareable starters and specialty beverages, while optimizing pricing to enhance value. These initiatives aim to attract customers and support profitability.

CBRL has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters, missing the mark on the other occasion, the average beat being 68.5%. CBRL shares have gained 44.9% over the past year. CBRL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

BGSF provides consulting, managed services and professional workforce solutions to a wide range of industries through its various divisions. The company is based in Plano, TX. Recently, BGSF inked a deal with INSPYR Solutions to sell its Professional division.

BGSF shares have gained more than 25% in the past month.  BGSF currently sports a Zacks Rank #1. The Zacks Consensus Estimate for current year earnings has risen in excess of 300% over the past 60 days.

ArcBest provides freight transportation services and solutions. The company is based in Fort Smith, AR. The company is being well-served by its efforts to control costs, improve productivity and enhance service quality.

The company expects its 2026 earnings per share to increase 52.1% from 2025 actuals. The transportation company has missed the consensus mark for earnings in three of the past four quarters, beating the mark in the other quarter. ArcBest currently carries a Zacks Rank #2 (Buy).

Cardinal Health is a well-known healthcare distribution company in the United States, playing a critical role in the pharmaceutical supply chain. Cardinal Health’s prospects in the rest of 2025 are likely to be driven by renewed investor optimism following a series of strategic improvements aimed at revitalizing its business model.

CAH’s Medical segment is expected to be a key growth driver, supported by increased demand for surgical and laboratory products. The company surpassed the Zacks Consensus Estimate for earnings in each of the past four quarters by an average of 10.3%. Cardinal Health currently carries a Zacks Rank #2.

AutoNation is one of the largest automotive retailers in the United States. AutoNation’s diversified product portfolio and multiple revenue streams mitigate risk and support sustained growth. Strategic acquisitions further strengthen its market position and prospects.

AutoNation surpassed the Zacks Consensus Estimate for earnings in two of the past four quarters, missing the mark on the other two occasions. AutoNation currently carries a Zacks Rank #3 (Hold).

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

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

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