It has been a remarkable year for stock market investors. The S&P 500 Index has soared almost 27% this year amid a resilient macroeconomic environment and robust corporate earnings. Hence, it might become difficult for retail investors to choose stocks independently and generate solid returns in 2025.

To do this, one needs to understand the company fundamentals and try to place them against the current economic background to figure out how the stock may fare as an investment. One way to cut short this task is to follow brokers’ recommendations. Stocks like The Gap, Inc. GAP, Cardinal Health, Inc. CAH, Applied Industrial Technologies, Inc. AIT, Jones Lang LaSalle Incorporated JLL and United Airlines Holdings, Inc. UAL are worth betting on.

As brokers directly communicate with top management, they have more insight into what is happening in a particular company. They assess a company’s publicly available documents and even attend conference calls.

Brokers have more understanding of the overall sector and industry. They place company fundamentals against the current economic backdrop to determine how a particular stock will fare as an investment.

When brokers upgrade a stock, one can easily rely on their judgment. Yet, depending on broker upgrades is not enough to build your investment portfolio. Several other factors should be taken into account to ensure steady returns.

Selecting the Winning Strategy

We have a screening strategy that will help in your search for potential winners:

Broker Rating Upgrades (Four Weeks) of 1% or More: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the last four weeks.

Current Price Greater Than $5: The stocks must trade above $5.

Average 20-Day Volume Greater Than 100,000: A large trading volume guarantees that the stock is easily tradable.

Zacks Rank Equal to #1 or 2: Despite good or bad market conditions, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.

VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2, offer the best upside potential.

5 Stocks With Upgraded Brokers Ratings

Based in San Francisco, Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. The company offers products for men, women and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix and Hill City brands.

GAP’s fiscal 2025 earnings are expected to jump 41.3% year over year. Gap, sporting a Zacks Rank #1, has witnessed a 5.7% upward revision in broker ratings over the past four weeks.

Headquartered in Dublin, OH, Cardinal Health is a nationwide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. CAH has two reporting segments – Pharmaceutical and Specialty Solutions, Global Medical Products and Distribution and Others.

Cardinal Health’s fiscal 2025 earnings are projected to grow 3.9% on a year-over-year basis. The company, carrying a Zacks Rank #2 at present, has witnessed a 13.3% upward revision in broker ratings over the past four weeks.

Based in Cleveland, OH, Applied Industrial is a distributor of value-added industrial products. AIT is also well known in the market for its engineering, design and systems integration services, as well as its inventory management solutions and maintenance training services that boost the value of end users in the market.

Applied Industrial’s fiscal 2025 earnings are expected to rise marginally year over year. AIT, carrying a Zacks Rank #2, has witnessed a 12.5% upward revision in broker ratings over the past four weeks.

Jones Lang LaSalle, based in Chicago, IL, is a leading full-service real estate firm that provides corporate, financial and investment management services. JLL reports its operations under five global business segments – Markets Advisory, Capital Markets, Work Dynamics, JLL Technologies and LaSalle Investment Management.

Jones Lang LaSalle’s 2024 earnings are projected to surge 80.7% on a year-over-year basis. The company, carrying a Zacks Rank #2 at present, has witnessed a 22.2% upward revision in broker ratings over the past four weeks.

Based in Chicago, IL, United Airlines transports people and cargo not only throughout North America but also destinations in Asia, Europe, the Middle East and Latin America. UAL is part of four passenger joint business arrangements.

United Airlines’ 2024 earnings are expected to increase 2.2% year over year. UAL, sporting a Zacks Rank #1, has witnessed a 9.1% upward revision in broker ratings over the past four weeks.

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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.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance

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United Airlines Holdings Inc (UAL) : Free Stock Analysis Report

Cardinal Health, Inc. (CAH) : Free Stock Analysis Report

Jones Lang LaSalle Incorporated (JLL) : Free Stock Analysis Report

Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report

The Gap, Inc. (GAP) : Free Stock Analysis Report

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