Zacks.com featured highlights include Grupo Supervielle, Emergent BioSolutions and Innodata

For Immediate Release

Chicago, IL – October 15, 2024 – Stocks in this week’s article are Grupo Supervielle S.A. SUPV, Emergent BioSolutions Inc. EBS and Innodata Inc. INOD.

3 Stocks Poised for Better Returns with New Analyst Coverage

The initiation of coverage by new analysts can provide substantial advantages to investors and exert a notable impact on financial markets. Analysts typically possess specialized knowledge and expertise in particular industries or sectors. Through thorough research and analysis, they offer investors critical insights into a company's financial health, growth potential, competitive standing, and industry trends — insights that are often difficult for individual investors to acquire independently.

Grupo Supervielle S.A., Emergent BioSolutions Inc. and Innodata Inc. are three stocks that have witnessed new analyst coverage lately. These are, therefore, expected to attract investor attention.

Coverage initiation on a stock by analyst(s) usually portrays higher investor inclination. Investors, on their part, often assume that there is something special in a stock to attract analysts to cover it. In other words, they believe that the company coming under the microscope definitely holds some value.

Do analysts create value for companies by initiating coverage? Of course, they do because they play an important intermediary role with their extensive access to relevant data. Many investors have immense faith in analysts' research as they fear that a lack of information might trigger inefficiencies.

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

Needless to say, the average change in broker recommendation is preferable to a single recommendation change.

Impact on Stock Price

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

Now, if an analyst issues a new recommendation on a company that has very little or no existing coverage, investors start paying more attention to it. Also, any further information attracts portfolio managers to build a position in the stock.

So, it's a good strategy to bet on stocks that have seen increased analyst coverage over the last few weeks.

Here are three out of the five stocks that passed the screen:

Grupo Supervielle S.A.: This is a Buenos Aires, Argentina-based financial services holding company. SUPV currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

SUPV shares have gained 31.3% over the past three months against the industry's 10.3% decline. Earnings per share (EPS) estimates for SPUV have moved north to $1.29 from $1.20 for 2024 in the past 60 days, depicting analysts' optimism over the company's prospects. The estimated figure indicates 59.3% growth from a year ago.

Emergent BioSolutions: Headquartered in Gaithersburg, MD, this is a life sciences company. EBS currently has a Zacks Rank #2 (Buy).

Emergent BioSolutions' shares have lost 22.6% over the past three months, underperforming the industry's 1% rise. Yet, the bottom-line estimates for EBS have improved to a loss of $1.30 per share from a loss of $1.98 per share for 2024 in the past 30 days. It also has a favorable VGM Score of B.

Innodata: Based in Ridgefield Park, NJ, this company operates as a global data engineering company. INOD currently has a Zacks Rank #3 (Hold).

INOD shares have lost 17.9% over the past three months compared with the industry's 9.6% rise. Nonetheless, EPS estimates for 2024 have moved north to 21 cents from 18 cents in the past 60 days. Innodata also has a favorable VGM Score of B.

You can get the remaining stock on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your trading. Further, you can also create your strategies and test them first before taking the investment plunge.

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.

Click here to sign up for a free trial of the Research Wizard today.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2349685/3-stocks-poised-for-better-returns-with-new-analyst-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 >>.

Follow us on Twitter:  https://www.twitter.com/zacksresearch

Join us on Facebook:  https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

Visit: https://www.zacks.com/

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

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/performancefor information about the performance numbers displayed in this press release.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How To Profit From Trillions On Spending For Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 
Emergent Biosolutions Inc. (EBS): Free Stock Analysis Report
 
Innodata Inc. (INOD): Free Stock Analysis Report
 
Grupo Supervielle S.A. (SUPV): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research