Studies have shown that broker upgrades lead to short-term outperformance. Stocks recently upgraded by brokerage analysts include Ambac Financial Group, Inc. (NYSE: ABK), Costco Wholesale Corporation (NASDAQ: COST), Monster Worldwide, Inc. (NASDAQ: MNST) and Applied Materials (NASDAQ: AMAT). To learn more about how you can profit from broker upgrades, visit: http://at.zacks.com/?id=139.
Here is a synopsis of stocks with recent broker upgrades:
Ambac Financial Group, Inc. (NYSE: ABK) has watched its Average Broker Recommendation rise to 1.95. Analysts appreciate several aspects of the company’s fundamentals, according to Zacks Research Digest, including its recognizable name in the bond insurance industry; its relatively stable credit quality of investment portfolio; and its strong balance sheet. In addition, analysts like Ambac’s growth opportunities, especially the potential from international markets and its focus on niche areas. Ambac is scheduled to report its first-quarter results on Apr 25. The company is a Zacks #2 Rank company.
Costco Wholesale Corporation (NASDAQ: COST) enjoyed a strong month of March with a better-than-expected same-store sales rise of 6%. Costco enjoyed a brokerage upgrade on Apr 17, which helped the warehouse-club retailer’s Average Broker Recommendation rise to 2.31 of late. According to Zacks Research Digest, analysts believe that Costco is the best-positioned company in the warehouse club industry and continues to deliver solid same-store sales growth on a consistent basis. The company’s differentiated brand and private label product offering has enabled it to provide an upscale club experience to its members and has enabled it to continue gaining market share and increasing sales per square foot.
Monster Worldwide, Inc.’s (NASDAQ: MNST) global presence is considered one of its positives according to analysts at Zacks Research Digest. Monster Worldwide has established itself as the leader in online global employment services. Analysts also appreciate its business model, which generates high incremental margins; has low capital requirements; and generates high returns on capital and strong free cash flow. Monster Worldwide is scheduled to report its first-quarter results on Apr 26.
Applied Materials (NASDAQ: AMAT) has watched its Average Broker Recommendation rise to 1.7. According to Zacks Research Digest, analysts like that AMAT is not solely dependent on equipment revenue, and could experience higher growth rates than its peers if the flat panel display and service sectors outgrow the organic equipment industry. Furthermore, analysts generally believe the two key differentiators for AMAT are its Services group and Flat Panel Display equipment business. While these two segments are not expected to completely offset weakness in the core semiconductor business, they provide a potential for upturn and downside protection in the case of a downturn.
About Broker Upgrades
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