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Zacks.com featured highlights include C.H. Robinson Worldwide, Covenant Logistics, ArcBest, American Airlines and Bunge

·7-min read

For Immediate Release

Chicago, IL – August 15, 2022 – Stocks in this week’s article are C.H. Robinson Worldwide CHRW, Covenant Logistics Group CVLG, ArcBest Corp. ARCB, American Airlines AAL and Bunge Ltd. BG.

5 Stocks Worth a Look After Brokerage Upgrades

The ongoing second-quarter 2022 earnings season, which is in its last leg, has turned out to be quite satisfactory despite sore points like supply-chain woes and red-hot inflation posing a challenge. The pretty decent picture so far has been highlighted by the improvement in the top and the bottom lines of the S&P 500 companies (that already reported), which grew 15.3% and 8.1%, respectively, on a year-over-year basis (data provided by our latest earnings outlook).

While 77.4% companies beat expectations on the revenue front, 68.4% participants outpaced on earnings. Generally, an earnings beat by a company leads to an appreciation in its stock price. Moreover, the fact that inflation in the United States moderated a bit (the consumer price index was up 8.5% year over year in July, down from a 9.1% year-over-year increase in June) brightens the scenario. Against this bullish backdrop, broker-favorite stocks like C.H. Robinson Worldwide,Covenant Logistics Group,ArcBest Corp.,American Airlines andBunge Ltd. should be on investors' watch list.

Why Is Broker Advice Important?

Brokers not only scrutinize the publicly available financial documents but also attend company conference calls and other presentations. Naturally, it is rewarding for investors to adhere to such well-researched information as the same aims to generate maximum returns from their portfolio. The estimate revisions serve as an important pointer regarding the price of a stock.

Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide an unbiased opinion to investors after a thorough research. Buy-side analysts are employed by hedge funds, mutual funds, etc., while the independent ones simply sell their reports to investors.

To take care of the earnings performance, we designed a screen based on improving broker recommendations and upward estimate revisions over the last four weeks.

Do Not Ignore the Top Line

However, designing a strategy based solely on the bottom line is unlikely to result in a winning approach. Actually, according to many market watchers, a revenue beat is more credible for a company than a mere earnings beat. To address the top-line concerns, we included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.

Here are five of the 10 stocks that made it through the screen:

C.H. Robinson Worldwide, currently sporting a Zacks Rank #1 (Strong Buy), operates as an asset-light logistics player. The improving freight scenario in the United States is aiding this Minnesota-based freight broker. Efforts to control costs also bode well. Measures to reward CHRW's shareholders instill further confidence in the stock.

C.H. Robinson has an encouraging earnings track record. The bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark in the remaining one). CHRW has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 14.1% upward over the past 60 days.

You can see the complete list of today's Zacks #1 Rank stocks

Covenant Logistics offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, as well as asset-light warehousing, transportation management and freight brokerage capability.

The gradually improving freight market scenario is a tailwind to Covenant. CVLG's cost-control efforts are encouraging as well. CVLG currently flaunts a Zacks Rank of 1. CVLG has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 14.3% upward over the past 60 days.

ArcBest: Based in Fort Smith, AK, ARCB provides freight transportation services and solutions. Strong freight demand and favorable pricing are driving growth across ArcBest's Asset-Based and Asset-Light segments.

The Zacks Consensus Estimate for ArcBest's 2022 earnings has been revised 4.7% upward in the past 60 days. ARCB currently carries a Zacks Rank #2 (Buy).

American Airlines is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are hurting the bottom line.

Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2022 earnings being revised 7.8% upward. AAL currently carries a Zacks Rank #3 (Hold).

Bunge Limited: Headquartered in St. Louis, MO, Bunge operates as an agribusiness firm, delivering essential food, feed and fuel across the globe. BG is reportedly the world's leader in oilseed processing, and a leading producer and supplier of specialty plant-based oils and fats.

Bunge delivered a trailing four-quarter earnings surprise of 50.7%, on average. BG has a long-term earnings growth expectation of 6.7%. It currently carries a Zacks Rank of 3.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1967672/5-stocks-worth-a-look-following-upgrade-by-brokers

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Contact: Jim Giaquinto

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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
 
Bunge Limited (BG) : Free Stock Analysis Report
 
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
 
ArcBest Corporation (ARCB) : Free Stock Analysis Report
 
Covenant Logistics Group, Inc. (CVLG) : Free Stock Analysis Report
 
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