Studies have shown that broker upgrades lead to short-term outperformance. Stocks recently upgraded by brokerage analysts include C.H. Robinson Worldwide (NASDAQ: CHRW), The Bear Stearns Companies Inc. (NYSE: BSC), 3M (NYSE: MMM) and Microsoft Corporation (NASDAQ: MSFT). 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:
C.H. Robinson Worldwide’s (NASDAQ: CHRW) Average Broker Recommendation is up to 2.23. Analysts polled by Zacks Research Digest appreciate the company’s competitive position and strong market share. Specifically, C.H. Robinson Worldwide is one of the largest third-party logistics providers in North America, and continues to take market share in its core truck offering. Fundamentals are also compelling at CHRW, as its excellent financial position is bolstered by strong cash flow, low capital requirements and no balance sheet debt. Its non-asset-based model provides some of the highest capital returns in the logistics universe.
The Bear Stearns Companies Inc. (NYSE: BSC) watched its Average Broker Recommendation rise to 1.75. According to Zacks Research Digest, analysts believe BSC should continue to grow and diversify while strengthening its equity business. This could come either in the form of hiring equity investment bankers to expand its M&A and IPO capacity or by acquisition. Analysts further state that BSC’s earnings are rising as the company is well run and the market environment is supportive. Expanding its international presence is another area of potential growth for BSC.
3M’s (NYSE: MMM) Average Broker Recommendation has risen to 1.61. According to Zacks Research Digest, analysts appreciate 3M’s diversified presence, which stretches across various sectors in domestic and global markets, as well as its continued operating margin growth. Management has also injected much-needed investment into core businesses, particularly in terms of sales coverage, advertising, merchandising and R&D, in order to accelerate long-term growth capabilities.
Microsoft Corporation’s (NASDAQ: MSFT) Average Broker Recommendation is up to 1.72. Analysts polled by Zacks Research Digest appreciate Microsoft’s strategy to invest heavily in its long-term prospects. They also believe that the bulk of additional investments will be focused around bolstering the company’s online presence by leveraging its desktop and other non-MSN assets to capture the fast-growing online market opportunity, especially in online advertising. Analysts like Microsoft’s management as well, along with its strong balance sheet.
About Broker Upgrades
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