Looking for interesting stock trade ideas but don't know where to start? One idea is to consider sell side analyst ratings.
To illustrate the idea, we ran a screen on the tech sector for stocks with market caps above $10 billion. We then screened these stocks for those currently with "Buy" ratings from Deutsche Bank (analysts at Deutsche believe these stocks will outperform).
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you agree with Deutsche Bank that these stocks will outperform? Use this list as a starting point for your own analysis.
List sorted by ratings date.
1. Broadcom Corp. (BRCM): Designs and develops semiconductors for wired and wireless communications. Market cap of $17.98B. On 01/09/2012, Deutsche Bank had a Buy rating on the stock. The stock has had a couple of great days, gaining 6.79% over the last week.
2. Cerner Corporation (CERN): Designs, develops, markets, installs, hosts, and supports healthcare information technology, healthcare devices, and content solutions for healthcare organizations and consumers worldwide. Market cap of $10.33B. On 01/06/2012, Deutsche Bank had a Buy rating on the stock. The stock is a short squeeze candidate, with a short float at 8.54% (equivalent to 8.8 days of average volume). The stock has gained 24.9% over the last year.
3. Accenture plc (ACN): Operates as a management consulting, technology services, and outsourcing company. Market cap of $38.84B. On 10/07/2011, Deutsche Bank had a Buy rating on the stock. The stock has gained 11.35% over the last year.
4. Cognizant Technology Solutions Corporation (CTSH): Provides information technology consulting and technology services in North America, Europe, and Asia. Market cap of $20.95B. On 10/07/2011, Deutsche Bank had a Buy rating on the stock. The stock has lost 8.16% over the last year.
*Data sourced from Yahoo! Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
