Stock markets have been experiencing significant volatility of late. This is largely because of the ongoing tariff war, as President Trump’s tariffs have led to retaliation, raising concerns of a full-scale trade war. Also, economic data indicates a slowdown in the U.S. economy. Further, inflationary pressures are mounting, with consumer inflation expectations rising. These factors have complicated the Federal Reserve’s ability to lower interest rates. In such an uncertain environment, retail investors face significant challenges in selecting the right stocks and achieving strong returns.
One way to cut short this task is to follow brokers’ recommendations. Stocks like RELX PLC RELX, Sprouts Farmers Market, Inc. SFM and Ralph Lauren Corp. RL are worth buying.
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. A few other factors should be taken into account to ensure steady returns.
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.
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.
Based in London, U.K., RELX provides information-based analytics and decision tools for professional and business customers. The company operates through four segments: Risk; Scientific, Technical & Medical; Legal; and Exhibitions.
RELX’s 2025 earnings are expected to rise 9.1% year over year. RELX, which currently carries a Zacks Rank #2, has witnessed an 11.1% upward revision in broker ratings over the past four weeks. You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Phoenix, AZ, Sprouts Farmers Market is an everyday healthy grocery store. SFM has a unique model that features fresh produce, a food section and a vitamin department focused on overall wellness.
SFM’s 2025 earnings are projected to grow 24.3% on a year-over-year basis. The company, carrying a Zacks Rank #2 at present, has witnessed a 7.1% upward revision in broker ratings over the past four weeks.
Based in Santa Clara, CA, Ralph Lauren is a major designer, marketer and distributor of premium lifestyle products. RL offers products in apparel, footwear, accessories, home furnishings and other licensed product categories.
Ralph Lauren’s fiscal 2026 earnings are expected to rise 13.5% year over year. RL, presently carrying a Zacks Rank #2, has witnessed a 5.6% 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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Ralph Lauren Corporation (RL) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
RELX PLC (RELX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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