75 Stock Ratings to Stay Ahead of the Eight Ball

Heading into summer with investment planning goals

   

75 Stock Ratings to Stay Ahead of the Eight Ball

A lot of investors like to take a break from the market during the summer season. By doing so, they miss out on some important trends. I don’t want you to succumb to their fate—being behind the eight ball when volume returns to the market and stocks start their inevitable rise. So let’s look at what this month has in store in the way of profit opportunities.

June is known as an earnings pre-announcement month. Now that first-quarter earnings season has come and gone, institutional investors have their eye on what analysts are predicting for second-quarter corporate profits.

Analyst Earnings Revisions: A Powerful Profit Predictor

Analysts publish their best estimates for earnings at the beginning of each quarter. As the earnings date nears, however, and the picture of a company’s performance becomes clearer, analysts frequently have to revise their estimates to make them more accurate. This too can draw buying interest, if the estimates are increasing. Given that analysts are often too conservative when it comes to fundamentally sound companies, positive revisions can lead to earnings surprises.

Your Own Personal Guide

So what I look for every earnings season is stocks with not only the highest year-over-year earnings and sales growth, but also the ones with the most aggressive upward earnings revisions. And you can do the same by running your positions through Portfolio Grader. One metric that my stock screening tool covers is analyst earnings revisions.

For example, if you were to run Apple (AAPL) through Portfolio Grader, you’d immediately see that the analyst community isn’t very bullish about this gadget giant—AAPL currently receives a D for Analyst Earnings Revisions. In fact, over the past ninety days, the average earnings estimate for this quarter has been slashed nearly 25%. Ouch!

It just goes to show that a lot can happen in a matter of weeks, or even days. Last week’s buys could become today’s holds, or even sells. So I can’t stress enough how important it is to continuously check up on your stocks, including by running them through Portfolio Grader. Now that analyst activity has picked up, let’s take a moment to review the 75 big name blue chips that have been upgraded or downgraded in Portfolio Grader over the weekend.

Upgrades

Last Week’s Holds, Now Buys

Symbol Company Name Quantitative Grade Fundamental Grade
ACE ACE B B
ADBE Adobe Systems B C
AIG American International Group B C
BSX Boston Scientific B D
EMN Eastman Chemical B B
F Ford B C
FITB Fifth Third Bancorp B B
HES Hess C B
HIG Hartford Financial Services Group B C
IR Ingersoll-Rand B C
KYO Kyocera B C
LINTA Liberty Interactive Corp. Interactive Series A B C
MA MasterCard B B
MFC Manulife Financial B C
MSI Motorola Solutions B B
MUR Murphy Oil B C
ORLY O’Reilly Automotive B B
ROP Roper Industries B B
RRC Range Resources B C
SNDK SanDisk B B
TV Grupo Televisa S.A.B. ADS B C
WFC Wells Fargo B B

Last Week’s Sells, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
AGU Agrium C C
AMTD TD Ameritrade C C
APC Anadarko Petroleum C C
AV Aviva C C
DHR Danaher D C
ERIC Ericsson C D
HPQ Hewlett-Packard C C
KSS Kohl’s C B
LVS Las Vegas Sands C B
PRU Prudential Financial C C
SDRL Seadrill Ltd. C B
TS Tenaris S.A. C C

Downgrades

Last Week’s Buys, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
ABT Abbott C B
ADP Automatic Data Processing C C
BAP Credicorp C B
BCE BCE C B
BEN Franklin Resources C B
DAL Delta Air Lines B C
DG Dollar General D B
DIS Walt Disney C B
ENB Enbridge C C
EPD Enterprise Products C B
GPC Genuine Parts C C
HCP HCP C B
KMI Kinder Morgan C C
NEE NextEra Energy C D
NGG National Grid PLC C C
NLSN Nielsen Holdings C C
NU Northeast Utilities C B
PAYX Paychex C C
PSA Public Storage C C
SYY Sysco B C
TRP TransCanada C C
UAL United Continental Holdings C C
VIA Viacom C C
WMT Wal-Mart C C

Last Week’s Holds, Now Sells

Symbol Company Name Quantitative Grade Fundamental Grade
ABV Companhia de Bebidas das Americas ADS D C
BEAM Beam D B
COP ConocoPhillips D C
CTL CenturyLink D B
D Dominion D D
DUK Duke Energy D C
EIX Edison International D B
FRX Forest Laboratories D D
HMC Honda Motor D D
HOG Harley-Davidson D B
KO Coca-Cola D C
PCG PG&E D C
RDS.B Royal Dutch Shell PLC D C
T AT&T F C
WFM Whole Foods Market Inc. D B
XEL Xcel Energy D C
XRX Xerox F B

Article printed from InvestorPlace Media, http://investorplace.com/2013/06/75-ways-to-stay-ahead-of-the-eight-ball-ace-adbe-aig-bsx-emn-f-fitb/.

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