5 Analyst Darlings to Buy and 5 to Sell Right Now

by Louis Navellier | December 4, 2012 8:50 pm

5 Analyst Darlings to Buy and 5 to Sell Right Now

If you’ve used my Portfolio Grader tool or have kept up with this blog, you know that I put a lot of weight on what analysts are saying about any given stock. And an effective way to judge how the analyst community feels about a stock is tracking their earnings estimates for the quarter.

Upward revisions are an important indicator of a company’s future success. You see, analysts are paid to estimate a company’s earnings outlook. If an analyst makes a wrong estimate that ends up costing investors money, that analyst could be out of a job. If a number of Wall Street analysts start to move their forecasts higher, it’s a good bet that the stock will outperform expectations and deliver market-beating returns to investors since positive revisions are never made lightly.

I know that during earnings season, I focus mainly on sales and earnings growth. But even though we’re in the lull between earnings, we’re seeing interesting analyst activity regarding some of the hottest names on Wall Street. While the market may have not reacted to these upgrades (and downgrades) just yet, I want you to be prepared for what’s to come the next earnings season.

That being said, here are five companies that have the analyst community buzzing, and they should be on your radar as well.

To put these earnings estimates into perspective, analysts forecast that the average S&P 500 company will grow earnings by 8.8% this quarter. This means that each of the five buys above are well-positioned to win big next earnings season, which kicks off around the first week of January.

Of course, I’d also like to alert you to these big blue chips that have fallen in the eyes of the analyst community.

Now a lot can happen in the months between now and fourth-quarter earnings season, so there is a chance that some of these will firm up before then. However, in the meantime I see no reason to hold stocks that are under performing their peers, especially when so many premium stocks are still on sale.

If you want to see how the analyst community feels about one of your holdings, feel free to run it through my Portfolio Grader screening tool. After hitting “submit,” you’ll see that one of the components of the stock’s Fundamental Grade is “Analyst Earnings Revisions.”

Endnotes:
  1. GPS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GPS
  2. HFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=HFC
  3. LPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=LPL
  4. MCO: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCO
  5. REGN: http://studio-5.financialcontent.com/investplace/quote?Symbol=REGN
  6. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  7. DD: http://studio-5.financialcontent.com/investplace/quote?Symbol=DD
  8. GM: http://studio-5.financialcontent.com/investplace/quote?Symbol=GM
  9. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ
  10. POT: http://studio-5.financialcontent.com/investplace/quote?Symbol=POT

Source URL: http://investorplace.com/2012/12/5-analyst-darlings-to-buy-and-5-to-sell-right-now-gps-hfc-lpl-amzn-mco/
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