What can be more lucrative than buying a quality stock during a pullback?
Buying a stock that the market doesn’t know is quality yet. That’s the idea behind our “Underfollowed Gems” premium screen.
On average, an S&P stock is covered by 14 analysts. So if a name is only being followed by six or fewer, it hasn’t attracted the full attention of the market. In fact, it hasn’t even captured half the interest of the market yet.
And if that stock is a Zacks Rank #1 (Strong Buy) or #2 (Buy), it means the market is missing out on a company with rising earnings estimates. But it won’t miss out for long, and the share price will appreciate as more and more analysts realize what they’ve been missing.
Below, you’ll find three Zacks Rank #1s that are underfollowed.
The few analysts that are watching these companies have raised their earnings estimates after solid quarterly reports.
When the market takes its next leg higher and analysts are less defensive, these stocks may be among the biggest beneficiaries.
For the full list and the screen’s parameters, make sure to click the link above.