5 Broker-Friendly Stocks to Watch as Markets Move North Amid Shutdown

Core Insights - Broader equity markets are reaching record highs despite a government shutdown and inflation concerns, with investors expecting the shutdown to be brief and anticipating interest rate cuts by the Fed in 2025 due to weak labor market conditions [1][8] Investment Strategies - Investors are looking to capitalize on the upward movement of stocks by creating portfolios that ensure healthy returns, although the abundance of stocks makes this challenging [2] - Following broker advice is suggested as a strategy, with broker-favored stocks such as Bread Financial (BFH), Delek US Holdings (DK), American Eagle Outfitters (AEO), Advance Auto Parts (AAP), and Archer Daniels Midland Company (ADM) recommended for monitoring [3][8] Stock Screening Methodology - A screening process has been developed to identify stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks, incorporating the price/sales ratio as a valuation metric [4][5] - Screening parameters include: - Top 75 companies with net upgrades in broker ratings over the last four weeks - Top 10 stocks with earnings estimate revisions for the upcoming quarter - Bottom 10% of stocks based on price-to-sales ratio [5][6] Featured Stocks - Bread Financial (BFH): Benefits from data-driven marketing strategies and solid receivables growth in Card Services, with a Zacks Rank of 3 and an average earnings beat of 32% [7][8] - Delek US Holdings (DK): Has a competitive edge in the oil and gas sector due to extensive downstream operations, with a Zacks Rank of 3 and an average earnings beat of 16.1% [9] - American Eagle Outfitters (AEO): Focused on cost-reduction and brand progress, with strategic initiatives aimed at long-term growth and a Zacks Rank of 3 [10][11] - Advance Auto Parts (AAP): Completed a store footprint optimization program and plans to open over 100 new stores, with a Zacks Rank of 3 [11] - Archer Daniels Midland Company (ADM): Focused on global trends and investing in technological capabilities, with a Zacks Rank of 3 and an average earnings beat of 0.05% [12][13]