Upgraded To Strong Buy [NEW]

Kemper (NYSE:KMPR) stock climbed 6.2% on Tuesday to its highest in over a year after Raymond James upgraded the insurer to Strong Buy from Outperform on improved outlook and management's initiatives that will likely boost results.

upgraded to strong buy

Halliburton (HAL) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

Sell-side analysts work at investment banks and are the ones who will issue recommendations of "strong buy," "outperform," "neutral," or "sell." Buy-side analysts instead work for investment firms or funds and choose investments that coincide with the fund's investment strategy."}},"@type": "Question","name": "Why Are Some Recommendations Made as "Outperform" and Others as "Buy"?","acceptedAnswer": "@type": "Answer","text": "Among sell-side firms, there is no standardized recommendation system, with different investment banks using their own internal rating scale. Thus, one bank may issue a "buy" rating that is equivalent to another bank's rating of "outperform." In both cases, the analysts have determined that the stock in question should have returns in excess of the broader market.","@type": "Question","name": "Should I Sell a Stock I Own If It Receives an Analysts Rating of "Sell"?","acceptedAnswer": "@type": "Answer","text": "Analysts' ratings are arrived at based on fundamental and econometric analysis of a company and its future prospects. But, analysts can sometimes be wrong or make a mistake. As a result, you will want to consider the consensus of recommendations from several professional analysts. If they all (or mostly) recommend "sell," you may want to consider reducing or closing out your position in that stock,"]}]}] Investing Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All Simulator Login / Portfolio Trade Research My Games Leaderboard Economy Government Policy Monetary Policy Fiscal Policy View All Personal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All News Markets Companies Earnings Economy Crypto Personal Finance Government View All Reviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All Academy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All TradeSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.InvestingInvesting Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All SimulatorSimulator Login / Portfolio Trade Research My Games Leaderboard EconomyEconomy Government Policy Monetary Policy Fiscal Policy View All Personal FinancePersonal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All NewsNews Markets Companies Earnings Economy Crypto Personal Finance Government View All ReviewsReviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All AcademyAcademy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All Financial Terms Newsletter About Us Follow Us Facebook Instagram LinkedIn TikTok Twitter YouTube Table of ContentsExpandTable of ContentsThe Scale of RatingsMapping the BasicsExamples of Analyst RatingsFAQsFundamental AnalysisToolsUnderstanding Buy, Sell, and Hold Ratings of Stock AnalystsByMitchell GrantFull Bio LinkedIn Mitchell Grant is a self-taught investor with over 5 years of experience as a financial trader. He is a financial content strategist and creative content editor.Learn about our editorial policiesUpdated July 12, 2022Reviewed byJeFreda R. Brown Reviewed byJeFreda R. BrownFull Bio LinkedIn Twitter Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of Xaris Financial Enterprises and a course facilitator for Cornell University.Learn about our Financial Review BoardFact checked byKirsten Rohrs SchmittIn order to reach an opinion and communicate the value and volatility of a covered security, analysts research public financial statements, listen in on conference calls, and talk to managers and the customers of a company, typically in an attempt to come up with findings for a research report.

Sell-side analysts work at investment banks and are the ones who will issue recommendations of "strong buy," "outperform," "neutral," or "sell." Buy-side analysts instead work for investment firms or funds and choose investments that coincide with the fund's investment strategy.

3. Tesla (NASDAQ: TSLA) was upgraded by Citi to Neutral from Sell with a price target of $176 (from $141.33). The analyst believes the valuation is more justified now after the recent pullback in Tesla stock that has created a more balanced risk/reward in the near term.

4. Yum! Brands (NYSE: YUM) was upgraded by Argus to Buy from Hold with a price target of $142. The analyst said, "We expect consumers to opt for the company's relatively inexpensive menu items and look for it to grow at a solid pace. We also expect YUM! Brands to benefit from an eventual reopening of the Chinese economy and an acceleration in restaurant openings."

5. Vale SA (NYSE: VALE) was upgraded by Deutsche Bank to Buy from Hold with a price target of $20 (from $19). The analyst said, Vale is a "cash cow with option value," adding, "Unlike major peers, Vale is positioned to steadily increase iron ore and base metal volumes over the next three years at low capex intensity, keeping investment levels contained and cash flows strong."

6. Activision Blizzard (NASDAQ: ATVI) was upgraded by Baird to Outperform from Neutral with a price target of $95. The analyst said, "We are increasing our 'standalone' valuation of Activision Blizzard to $78, although we continue to expect the acquisition by Microsoft (NASDAQ: MSFT) to close next year ($95 deal price). We note positive momentum from Call of Duty: MW2 combined with other key product launches (Warzone 2.0, WoW expansion, Diablo IV, next COD) should provide improving visibility for out-year earnings targets, and possibly offer some recession-resiliency." 041b061a72