Buy These 5 Stocks With Upgraded Broker Ratings Right Away

The operating backdrop continues to be challenging for stocks amid macroeconomic and geopolitical uncertainties. Thus, it’s not easy for individual investors to choose stocks independently and generate solid returns.

One way to choose the right stocks is to follow rating upgrades by brokers. In this regard, stocks like BJ's Wholesale Club Holdings, Inc. BJ, Elevance Health Inc. ELV, MGIC Investment Corporation MTG, Mercer International Inc. MERC and RCM Technologies, Inc. RCMT are worth betting on.

As brokers directly communicate with the top management, they have an in-depth idea about what’s happening in a particular company. Also, they diligently go through the company’s publicly available documents and even attend conference calls.

Brokers have a thorough understanding of the overall sector and industry. They place the company fundamentals against the current economic backdrop to determine how the stock will fare as an investment.

Thus, when brokers upgrade a stock, you can rely on their judgment. But solely depending on broker upgrades is not a good way to build your investment portfolio. Several other factors should be taken into consideration to ensure steady returns.

Selecting the Winning Strategy

We have a screening strategy that will help you 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 be trading 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: No matter whether market conditions are good or bad, 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.

Here are the five of the 12 stocks that qualified the screening:

BJ's Wholesale Club, based in Westborough, MA, operates warehouse clubs on the east coast of the United States. BJ has emerged as one of the preferred destinations for shoppers regarding essentials and other items.

BJ's Wholesale Club’s fiscal 2023 earnings are projected to increase 9.5%. The stock, sporting a Zacks Rank #1 at present, has witnessed a 7.7% upward revision in broker ratings over the past four weeks.

Indianapolis, IN-based Elevance Health is a health benefits company. It supports consumers, families and communities across the entire care journey connecting to the care, support and resources to lead healthier lives. The company, formerly known as Anthem, Inc., changed its name to Elevance Health Inc. this June.

Its earnings for 2022 are expected to jump 10.9%. Elevance Health, currently carrying a Zacks Rank #2, has witnessed 7.7% upward revision in broker ratings over the past four weeks.

Milwaukee, WI-headquartered MGIC Investment is the parent company of Mortgage Guaranty Insurance Corporation, the largest private mortgage insurer in the United States. With a focus on sustainable homeownership, MTG provides a critical component of the country's residential mortgage finance system by protecting mortgage investors from credit losses.

MGIC Investment’s 2022 earnings are projected to increase 27.2%. The stock, carrying a Zacks Rank #2 at present, has witnessed a 50% upward revision in broker ratings over the past four weeks.

Mercer International, headquartered in Canada, manufactures and sells northern bleached softwood kraft pulp. MERC operates through two segments – Pulp and Wood Products.

The company’s earnings for 2022 are expected to jump 57.4%. Mercer International, currently sporting a Zacks Rank #1, has witnessed 33.3% upward revision in broker ratings over the past four weeks.

Based in Pennsauken, NJ, RCM Technologies offers business and technology solutions in the United States, Canada, Puerto Rico, and Serbia. RCMT operates through three segments – Engineering, Specialty Health Care and Life Sciences and Information Technology.

RCM Technologies’ 2022 earnings are projected to surge 224.6%. The stock, carrying a Zacks Rank #2 at present, has witnessed a 50% upward revision in broker ratings over the past four weeks.

Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.

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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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MGIC Investment Corporation (MTG) : Free Stock Analysis Report
 
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
 
Mercer International Inc. (MERC) : Free Stock Analysis Report
 
RCM Technologies, Inc. (RCMT) : Free Stock Analysis Report
 
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
 
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