This year has been a remarkable one for stock market investors. The S&P 500 Index has soared almost 27% this year in a resilient macroeconomic environment amid robust corporate earnings. So, 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 Okta, Inc. OKTA, DoorDash, Inc. DASH and Brinker International, Inc. EAT 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.

3 Stocks With Upgraded Broker Ratings

Based in San Francisco, Okta operates as an identity partner in the United States and internationally. It offers products and services to manage and secure identities.

OKTA’s fiscal 2025 earnings are expected to jump 72.5% year over year. Okta, which carries a Zacks Rank #2, has witnessed a 2.7% upward revision in broker ratings over the past four weeks.

Headquartered in San Francisco, DoorDash offers a logistics and technology platform to local businesses. The company’s platform connects merchants, consumers and dashers. 

DoorDash’s 2024 earnings are projected to soar 118.3% on a year-over-year basis. The company, carrying a Zacks Rank #2 at present, has witnessed a 2.6% upward revision in broker ratings over the past four weeks.

Based in Dallas, TX, Brinker International owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. Chili’s is a preeminent leader in the bar & grill category of casual dining, while Maggiano’s is a full-service, national, casual dining Italian restaurant brand.

Brinker International’s fiscal 2025 earnings are expected to rise 44.2% year over year. EAT, sporting a Zacks Rank #1, has witnessed a 10.5% upward revision in broker ratings over the past four weeks.

Get the remaining stock on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software. 

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

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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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