The broader U.S. equity markets have been performing well lately, driven by positive updates on the trade front and a cooling inflationary trend. The Federal Reserve’s decision to keep interest rates unchanged in its latest policy meeting and the better-than-expected first-quarter 2025 earnings season also contributed to the market’s newfound enthusiasm.
With more tariff-related good news expected, markets are likely to gain further in the coming days. To take advantage of this rosy evolving situation, investors would do well to monitor broker-favored stocks like BrightSpring Health Services BTSG, Beyond BYON, Air Canada ACDVF, HF Sinclair DINO and Emergent BioSolutions EBS.
We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy a well-rounded one.
# (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).
Price-to-Sales = Bot%10 (The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio).
Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of 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:
BrightSpring: The company provides complementary and integrated home- and community-based pharmacy and health solutions for complex populations in need of specialized and/or chronic care. Through BTSG’s service lines, including pharmacy, home health care and primary care, and rehabilitation and behavioral health, the company provides comprehensive care and clinical solutions in all 50 states to over 400,000 customers, clients and patients daily.
