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Zacks.com featured highlights MicroStrategy, MBIA, Gen Digital, Luna Innovations and Otter Tail

For Immediate Release

Chicago, IL – May 30, 2023 – Stocks in this week’s article are MicroStrategy Inc. MSTR, MBIA Inc. MBI, Gen Digital Inc. GEN, Luna Innovations Inc. LUNA and Otter Tail Corp. OTTR.

Analysts Initiate Coverage: 5 Stocks in Focus

New analyst coverage unearths extensive data on stocks for investors. As analysts are privy to vital information, which is crucial for investment decisions, they are much relied on as lack of information creates chances of misinterpretation (over- or under-valued).

MicroStrategy Inc., MBIA Inc., Gen Digital Inc., Luna Innovations Inc. and Otter Tail Corp. are five stocks that have witnessed new analyst coverage lately. These are, therefore, expected to attract investor attention.

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Analysts don’t add a stock to their coverage randomly. New coverage on a stock is usually the result of huge investor focus on it or its prospects.

Interestingly, stocks typically see an incremental upward price movement with new analyst coverage compared to what they witness with the continuation of existing analyst coverage. Of course, the price movement depends on the recommendations from the new analysts. Positive recommendations — Buy and Strong Buy — lead to a significant positive incremental price reaction than Strong Sell, Sell or Hold recommendations.

Moreover, if an analyst gives a new recommendation on a company that has limited or no analyst coverage, investors start paying more attention to it. Also, any new information attracts portfolio managers to build a position in the stock.

However, one should preferably look for the average change in broker recommendation rather than a single recommendation change. Then again, an upgrade, an initiation or even increased coverage is equally important.

Keeping this mind, it’s a good strategy to focus on the number of analyst recommendations that have increased over the last few weeks.

Below, we have selected five stocks that have seen increased analyst coverage over the last few weeks.

Here are five out of nine stocks that passed the screen:

MicroStrategy: Headquartered in Tysons Corner, VA, this company provides enterprise analytics software and services in the United States, Canada and in international markets.

MSTR has gained 30% over the past year, outperforming the industry’s 21.4% rise. Earnings estimates for 2023 have increased to $31.09 per share from $2.10 over the past 30 days. This depicts analysts’ optimism over the company. Earnings for 2023 are expected to grow 125% from 2022. MSTR currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

MBIA: Based in Purchase, NY, this company provides financial guarantee insurance services to public finance markets.

MBI currently carries a Zacks Rank #2. The stock has lost 44% over the past year, outperforming the industry’s 15.1% decline. Loss estimates for 2023 have narrowed to 80 cents per share from $1.90 over the past 30 days.

Gen Digital: This company provides cyber safety solutions to consumers in the United States, Canada and internationally.

GEN currently carries a Zacks Rank #2. The stock has lost 32.4% over the past year, underperforming the industry’s 12.7% decline. That said, loss estimates for 2023 have increased to $1.98 per share from $1.94 over the past 30 days. Earnings for 2023 are expected to grow 9.4% from 2022.

Luna Innovations: This Roanoke, VA-based company provides fiber optic test, measurement, and control products worldwide.

LUNA currently carries a Zacks Rank #2. The stock has gained 44.9% over the past year, outperforming the industry’s 12.8% decline. Earnings for 2023 are expected to grow 42.9% from 2022.

Otter Tail Corporation: Based in Fergus Falls, MN, this company’s primary business is the production, transmission, distribution and sale of electric energy.

OTTR currently carries a Zacks Rank #3 (Hold). The stock has gained 16.1% over the past year, outperforming the industry’s 17.2% decline. Earnings estimates for 2023 have increased to $4.71 per share from $3.85 over the past 30 days.

This company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 38.4%. It carries an impressive VGM Score of B. This helps to identify stocks with the most attractive value, growth and momentum.

You can sign 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.

Click here to sign up for a free trial to the Research Wizard today.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2100302/analysts-initiate-coverage-5-stocks-in-focus

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.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year.

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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Gen Digital Inc. (GEN) : Free Stock Analysis Report

MBIA, Inc. (MBI) : Free Stock Analysis Report

Otter Tail Corporation (OTTR) : Free Stock Analysis Report

MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report

Luna Innovations Incorporated (LUNA) : Free Stock Analysis Report

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Zacks Investment Research