For Immediate Release
Chicago, IL – May 30, 2023 – Stocks in this week’s article are MicroStrategy Inc. MSTR, MBIA Inc. MBI, Gen Digital Inc. GEN, Luna Innovations Inc. LUNA and Otter Tail Corp. OTTR.
Analysts Initiate Coverage: 5 Stocks in Focus
New analyst coverage unearths extensive data on stocks for investors. As analysts are privy to vital information, which is crucial for investment decisions, they are much relied on as lack of information creates chances of misinterpretation (over- or under-valued).
MicroStrategy Inc., MBIA Inc., Gen Digital Inc., Luna Innovations Inc. and Otter Tail Corp. are five stocks that have witnessed new analyst coverage lately. These are, therefore, expected to attract investor attention.
Analysts don’t add a stock to their coverage randomly. New coverage on a stock is usually the result of huge investor focus on it or its prospects.
Interestingly, stocks typically see an incremental upward price movement with new analyst coverage compared to what they witness with the continuation of existing analyst coverage. Of course, the price movement depends on the recommendations from the new analysts. Positive recommendations — Buy and Strong Buy — lead to a significant positive incremental price reaction than Strong Sell, Sell or Hold recommendations.
Moreover, if an analyst gives a new recommendation on a company that has limited or no analyst coverage, investors start paying more attention to it. Also, any new information attracts portfolio managers to build a position in the stock.
However, one should preferably look for the average change in broker recommendation rather than a single recommendation change. Then again, an upgrade, an initiation or even increased coverage is equally important.
Keeping this mind, it’s a good strategy to focus on the number of analyst recommendations that have increased over the last few weeks.
Below, we have selected five stocks that have seen increased analyst coverage over the last few weeks.
Here are five out of nine stocks that passed the screen:
MicroStrategy: Headquartered in Tysons Corner, VA, this company provides enterprise analytics software and services in the United States, Canada and in international markets.
MSTR has gained 30% over the past year, outperforming the industry’s 21.4% rise. Earnings estimates for 2023 have increased to $31.09 per share from $2.10 over the past 30 days. This depicts analysts’ optimism over the company. Earnings for 2023 are expected to grow 125% from 2022. MSTR currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MBIA: Based in Purchase, NY, this company provides financial guarantee insurance services to public finance markets.
MBI currently carries a Zacks Rank #2. The stock has lost 44% over the past year, outperforming the industry’s 15.1% decline. Loss estimates for 2023 have narrowed to 80 cents per share from $1.90 over the past 30 days.
Gen Digital: This company provides cyber safety solutions to consumers in the United States, Canada and internationally.
GEN currently carries a Zacks Rank #2. The stock has lost 32.4% over the past year, underperforming the industry’s 12.7% decline. That said, loss estimates for 2023 have increased to $1.98 per share from $1.94 over the past 30 days. Earnings for 2023 are expected to grow 9.4% from 2022.
Luna Innovations: This Roanoke, VA-based company provides fiber optic test, measurement, and control products worldwide.
LUNA currently carries a Zacks Rank #2. The stock has gained 44.9% over the past year, outperforming the industry’s 12.8% decline. Earnings for 2023 are expected to grow 42.9% from 2022.
Otter Tail Corporation: Based in Fergus Falls, MN, this company’s primary business is the production, transmission, distribution and sale of electric energy.
OTTR currently carries a Zacks Rank #3 (Hold). The stock has gained 16.1% over the past year, outperforming the industry’s 17.2% decline. Earnings estimates for 2023 have increased to $4.71 per share from $3.85 over the past 30 days.
This company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 38.4%. It carries an impressive VGM Score of B. This helps to identify stocks with the most attractive value, growth and momentum.
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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/2100302/analysts-initiate-coverage-5-stocks-in-focus
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