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Zacks.com featured highlights include: Alpha and Omega Semiconductor, Preferred Apartment Communities, Hut 8 Mining, GCM Grosvenor and Harmony Biosciences

Zacks.com featured highlights include: Alpha and Omega Semiconductor, Preferred Apartment Communities, Hut 8 Mining, GCM Grosvenor and Harmony Bioscie...

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This story originally appeared on Zacks

For Immediate Release

Chicago, IL – September 29, 2021 – Stocks in this week’s article are Alpha and Omega Semiconductor Ltd. AOSL, Preferred Apartment Communities, Inc. APTS, Hut 8 Mining Corp. HUT, GCM Grosvenor Inc. GCMG and Harmony Biosciences Holdings, Inc. HRMY.

- Zacks

5 Stocks for Higher Returns as Analysts Initiate Coverage

As analysts are the key information intermediaries in capital markets, initiation of coverage by them offers critical information on a stock, which is of great value to investors.

Coverage initiation by analyst(s) on a stock portrays higher investor inclination. Investors, on their part, often assume that there is something special in a stock that attracts analysts’ interest. In other words, they believe that the company coming under coverage has value that can’t be ignored.

Obviously, stocks are not randomly chosen to cover. New coverage usually reflects a reassuring future envisioned by the analyst(s). At times, increased investors’ focus on a stock motivates analysts to take a closer look at it. After all, who doesn’t love to produce something that is already in demand? Hence, we often find that analysts’ ratings on newly-added stocks are more favorable than ratings on continuously covered stocks.

It is worth mentioning here that the average change in broker recommendation is always preferred over a single recommendation change.

New Analyst Coverage & Impact on Price Movement

The price movement of a stock is the function of the recommendations on it from new analysts. Typically, stocks see an upward price movement on new analyst coverage compared to what was witnessed with a rating upgrade under an existing coverage. Positive recommendations — Buy and Strong Buy — generally lead to a significantly positive price reaction than Hold recommendations. On the contrary, analysts hardly initiate coverage with a Strong Sell or Sell recommendation.

Meanwhile, investors start paying more attention to the stock (that has very few or no existing coverage) on which an analyst provides a new recommendation. Also, any new information attracts portfolio managers to build a position in the stock.

Below, we have selected five stocks that have seen increased analyst coverage over the past few weeks.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1801817/5-stocks-for-higher-returns-as-analysts-initiate-coverage

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.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.



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Alpha and Omega Semiconductor Limited (AOSL): Free Stock Analysis Report

 

Preferred Apartment Communities, Inc. (APTS): Free Stock Analysis Report

 

Harmony Biosciences Holdings, Inc. (HRMY): Free Stock Analysis Report

 

GCM Grosvenor Inc. (GCMG): Free Stock Analysis Report

 

Hut 8 Mining Corp. (HUT): Free Stock Analysis Report

 

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Zacks Investment Research