Studies have shown that broker upgrades lead to short-term outperformance. Stocks recently upgraded by brokerage analysts include Clear Channel Communications (NYSE: CCU), Caterpillar Inc. (NYSE: CAT), The Goldman Sachs Group, Inc. (NYSE: GS) and Lehman Brothers (NYSE: LEH). 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:
Clear Channel Communications (NYSE: CCU) has watched its Average Broker Recommendation rise to 2.50. Analysts polled by Zacks Research Digest believe that Clear Channel is well-positioned in the growth business of out-of-home advertising. Firms are also optimistic about CCU’s “Less is More” (LIM) program and believe it will have a positive impact in the long term. Analysts are also encouraged by Clear Channel’s diversified business model, its increased financial flexibility thanks to solid cash flow and its active share buyback.
Caterpillar Inc.’s (NYSE: CAT) Average Broker Recommendation has risen to 2.29 of late. According to Zacks Research Digest, analysts appreciate Caterpillar’s competitive advantages, which include its brand recognition, strong product lines and unparalleled global dealer network. Furthermore, the company caters to key sectors and is also an undisputed leader in terms of revenue in industries such as construction. Finally, price realizations, free cash flow and its balance sheet are also considered by analysts to be positives for Caterpillar.
The Goldman Sachs Group, Inc. (NYSE: GS) is best-positioned, versus its peers, for long-term earnings growth due to its superior business mix and culture, according to analysts polled at Zacks Research Digest. It has top-tier franchises in equity underwriting, equity and fixed income trading, and financial advisory. GS’ prime brokerage business provides attractive growth opportunities and high margins. Analysts also believe GS' institutional business, including trading, prime brokerage and clearing businesses, combined with minimal exposure to retail, position the company well within the industry.
Lehman Brothers’ (NYSE: LEH) Average Broker Recommendation is up to 1.73. Organic growth has been the key to LEH’s success, according to Zacks Research Digest. Growing its core competencies, LEH has created a significant and growing global presence in fixed income, equity issuance, trading, and merger and acquisition advisory. The company’s diversified revenue base means it can participate with a vast range of products across wide regions. Non-US businesses are expected to be at the heart of LEH’s long-term growth strategy.
About Broker Upgrades
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