Check out the latest POWR Ratings, and you will find dozens of stocks have been upgraded to A grades. An A grade in the POWR Ratings indicates that a stock is a Strong Buy. The considerable number of upgrades bodes well for the market.
Even if stocks stumble in the months ahead due to uncertainty regarding interest rates, Strong Buy stocks are more likely to outperform than stocks rated a Sell. That's why we tell investors to focus on stocks rated a Buy or Strong Buy.
Here is a quick look at three stocks recently upgraded to Strong Buys in the POWR Ratings: Brightcove (BCOV), Columbus McKinnon (CMCO), and Jabil (JBL).
Brightcove (BCOV)
BCOV provides cloud-based solutions for the distribution and publishing of digital media. BCOV has an overall grade of A, translating into a Strong Buy rating in the POWR ratings. The stock has a grade of A in the Value and Growth components. Click here to learn how BCOV fares in the Momentum, Quality, Sentiment, and Stability components. Of the 125 stocks in the Software - Application industry, BCOV is ranked 7th. Click here to find other top stocks in this industry.
Analysts predict good things for BCOV, setting an average target price of $28.67 for the stock. If BCOV hits this price point, it will have popped by more than 100%. Of the three analysts who have issued recommendations for the stock, one rates it a Strong Buy, and two rate it a Buy. BCOV's forward P/E ratio of 28.47 is a bit high, yet it is understandable considering the company's industry.
Columbus McKinnon (CMCO)
CMCO makes material handling products and solutions for integrated material handling provided to businesses and consumers across the globe. CMCO has an overall grade of A, a Strong Buy rating in the POWR Ratings system. It also has grades of B in the Quality, Sentiment, and Value components. Click here to learn more about how CMCO fares in the Momentum, Growth, and Stability components of the POWR Ratings. Out of 86 stocks in the Industrial - Machinery industry, CMCO is ranked 8th. You can find other top-ranked stock in this industry by clicking here.
Analysts have established an average target price of $62.86 for CMCO, meaning it has a potential 17% upside. Of the seven analysts who have studied CMCO in-depth, three rate it a Strong Buy, and three rate it a Buy and. As the nation's largest manufacturer of hoists, rigging tools, cranes, and actuators, CMCO stands to benefit significantly from the Biden administration's proposal to spend $2 trillion on infrastructure. Though CMCO struggled during the pandemic, the stock has the potential to pop moving forward if Biden's infrastructure plan comes to fruition.
Jabil (JBL)
JBL, headquartered in sunny St. Petersburg, Florida, is one of the top worldwide providers of electronic manufacturing services. The company has an overall grade of A, translating into a Strong Buy rating in the POWR Ratings system. The company has a grade of B in the Value, Sentiment, and Growth components. Click here to learn more about how JBL fares in the Quality, Momentum, and Stability components. Of the 75 publicly traded companies in the Technology - Services industry, JBL is ranked 5th. Investors can find other top stocks in this industry by clicking here.
The analysts are bullish on JBL, setting an average target price of $58.50 for the stock. If JBL reaches this level, it will have popped by 12%. Of the nine analysts who have issued JBL recommendations, five rate it a Strong Buy, and two rate it a Buy. JBL's second-quarter revenue came in at $6.83 billion, representing an 11.4% spike compared to the year prior. This figure also surpassed the $6.57 billion expected by Wall Street. JBL is in the catbird seat now that business activity is increasing. Plus, Apple (AAPL) is JBL's top customer. Its iPhone casings are made by JBL, making the stock all the more attractive moving forward.
BCOV shares were trading at $13.38 per share on Tuesday morning, down $0.12 (-0.89%). Year-to-date, BCOV has declined -27.28%, versus a 10.33% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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