5 Broker-Loved Stocks to Keep an Eye on After Recent Analyst Upgrades

Market Overview - The year 2024 has been highly beneficial for investors, with the S&P 500 Index increasing by over 20% [1] - Manufacturing activity data for January shows a manufacturing PMI of 50.9, the highest since September 2022, indicating a positive demand scenario [1] - The decline in inflation and subsequent Federal Reserve rate cuts have contributed to this optimistic outlook [1] - The return of Donald Trump as President has further fueled investor confidence [1] Stock Recommendations - Investors are encouraged to monitor broker-friendly stocks such as Dana (DAN), Camping World (CWH), ABM Industries (ABM), Cardinal Health (CAH), and DXC Technology (DXC) [2] - A screening process has been established to identify stocks with improving broker recommendations and upward revisions in earnings estimates over the past four weeks [3] Screening Criteria - The screening criteria include: - Top 75 companies with net upgrades in broker ratings over the last four weeks [4] - Top 10 stocks with upward revisions in earnings estimates for the upcoming quarter [4] - Companies in the bottom 10% of price-to-sales ratio, ensuring better valuation [5] - Stocks priced above $5 and with an average daily volume exceeding 100,000 shares over the last 20 trading days [5] - Top 3000 stocks by market capitalization [6] Company Insights - Dana (DAN): A provider of power conveyance and energy-management solutions, currently holds a Zacks Rank 1 (Strong Buy) with a 15.4% upward revision in earnings estimates for 2025 over the past 60 days [6][7] - Camping World (CWH): Engaged in retailing recreational vehicles, holds a Zacks Rank 2 (Buy) and has outperformed earnings estimates in two of the last four quarters with an average beat of 16.6% [8][9] - ABM Industries (ABM): Provides integrated facility solutions and has a Zacks Rank 2, with earnings surpassing estimates in the last four quarters, averaging an 11.6% beat [9][10] - Cardinal Health (CAH): A nationwide drug distributor with a Zacks Rank 2, expected earnings growth rate of 5.3% for the current year, and a 1.4% improvement in earnings estimates over the last 60 days [11] - DXC Technology (DXC): Benefiting from digital business strength and partnerships, holds a Zacks Rank 3 (Hold) with a 5.4% increase in earnings estimates over the past 60 days and an average earnings beat of 22.2% [12]