Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

Zacks.com featured highlights: Dean Foods, Barnes & Noble, Brookdale Senior Living, Dillard's and Plains GP Holdings

For Immediate Release

Chicago, IL – July 17, 2017 - Stocks in this week’s article include Dean Foods Company (NYSE: DF Free Report ), Barnes & Noble, Inc. (NYSE: BKS Free Report ), Brookdale Senior Living Inc. (NYSE: BKD Free Report ), Dillard's Inc. (NYSE: DDS Free Report ) and Plains GP Holdings, L.P. (NYSE: PAGP Free Report ).

Screen of the Week of Zacks Investment Research:

5 Broker-Favorite Stocks Your Portfolio Must Have

As the second-quarter reporting cycle gets underway, investors would look to add stocks that have the potential to surpass earnings expectations in the quarter. This is because an earnings beat generally leads to stock price appreciation.

Investors, after all, are driven by the sole objective of generating handsome returns from their portfolio. None of them want their hard-earned money to go down the drain.

However, the task of including potential outperformers in one’s portfolio is not an easy one. In fact, equity market tricks are not easy to master with a deluge of stocks flooding the space at any point of time. The task becomes even more daunting when one tries to select a winning portfolio without proper guidance. Given time constraints, it is in the best interest of investors to be guided by experts in the field.

Seek Broker Advice

The concerned experts are brokers. Generally, three types of brokers (sell-side, buy-side and independent) are present in the investment world, with sell-side analysts being most common. They are employed by various brokerage firms to provide unbiased opinion to investors on the stocks under their coverage after thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors. Brokers, irrespective of their types, do intense research on stocks in their coverage before coming up with recommendations.

Brokers/analysts attend company conference calls/presentations and scrutinize every detail available publicly before advising investors about their course of action (buy, sell or hold a stock).

Be Guided by Earnings Estimate Revisions

Brokers arrive at their recommendation on a stock after thoroughly analyzing the nitty-gritty. Therefore, it is natural for investors, on seeing brokers improve their recommendation on a particular stock, to believe that there is a solid reason/logic behind it. In fact, a rating upgrade generally leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade.

Estimates can move north for a number of reasons – favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario. To take care of the earnings performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the last four weeks.

Revenue Performance is Important

While we have talked about the bottom line in detail, the top line (revenue portion) cannot be ignored. Actually, according to many market watchers a revenue beat is more creditable for a company than a mere earnings outperformance, especially in an environment of revenue weakness due to macroeconomic headwinds like a strong dollar or lackluster demand for travel (which will hurt travel-focused companies).

To address top-line concerns, we have included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.

Screening Criteria

# (Up- Down Rating)/ Total (4 weeks) =Top #75 : This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.

% change in Q (1) est. (4 weeks) = Top #10 : This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.

To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:

Price-to-Sales = Bot%10 : The lower the ratio the better, companies meeting this criteria are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio.

Price greater than 5 : A stock trading below $5 will not likely create significant interest for most investors.

Average Daily Volume greater than 100,000 shares over the last 20 trading days : Volume has to be significant to ensure that these are easily traded.

Market value ($ mil) = Top #3000 : This gives us stocks that are the top 3000 if one judges by market capitalization.

Com/ADR/Canadian= Com : This takes out the ADR and Canadian stocks.

Here are five of the 10 stocks that made it through the screen:

Dean Foods Company (NYSE:DF Free Report ), based in Dallas, TX, is a leading processor and distributor of milk and other dairy products in the U.S. as well as a leading manufacturer of various specialty food products. This Zacks Rank #3 (Hold) company has a healthy 11% expected EPS growth rate for 3–5 years.

Barnes & Noble, Inc. (NYSE:BKS Free Report ), is a leading U.S. retail bookseller as well as a prominent retailer of content and educational products. Earnings per share for the current year are projected to increase 30.23% on a year-over-year basis. The company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

Brentwood, TN-based Brookdale Senior Living Inc. (NYSE: BKD Free Report ) is a leading owner and operator of senior living facilities throughout the United States. Currently, the company has a Zacks Rank #3 and an expected EPS growth rate of 13% for the next 3–5 years.

Dillard's Inc. (NYSE:DDS Free Report ) is a large departmental store chain featuring fashion apparel and home furnishings. The Zacks Consensus Estimate for the current quarter has increased 1 cent to 10 cents per share over the last month. The stock carries a Zacks Rank #3.

Plains GP Holdings, L.P. (NYSE:PAGP Free Report ), through its subsidiaries, is involved primarily in the transportation, storage and marketing of crude oil and refined products. The Zacks Consensus Estimate for this Zacks Rank #3 stock has increased 2 cents to 24 cents per share over the last seven days.

You can get the rest of the stocks on this list by signing 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 .

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 .

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don’t wait for the market to get better before you decide to do better. Start learning how to be a better trader today: https://at.zacks.com/?id=111

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. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .

Get the full Report on DF - FREE

Get the full Report on BKS - FREE

Get the full Report on BKD - FREE

Get the full Report on DDS - FREE

Get the full Report on PAGP - FREE

Follow us on Twitter:

Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch"> https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

Visit: https://www.zacks.com/performance

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
 
Dean Foods Company (DF): Free Stock Analysis Report
 
Barnes & Noble, Inc. (BKS): Free Stock Analysis Report
 
Brookdale Senior Living Inc. (BKD): Free Stock Analysis Report
 
Dillard's, Inc. (DDS): Free Stock Analysis Report
 
Plains Group Holdings, L.P. (PAGP): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research