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I ran a screen for broker rating changes last week or so and picked out the stocks, which have been upgraded by the brokers and have relatively high ROE (Return on Equity > 25%).

This list is a quick pick list only, which requires further research into each of the stocks before making an investment decision. However, I believe it can give some food for thought if you are looking for solid return on equity stocks and recent possible positive fundamental changes.

1) Coach, Inc. (COH) designs and markets accessories and gifts for women and men in the United States and internationally.

On July 18, 2012, Coach, Inc. was upgraded from Moderate Buy to Strong Buy at Calyon Securities (USA), Inc.

The company has Return on Equity Ratio of 53.78%. Other market ratios: P/E Ratio: 17.02, Forward P/E Ratio: 13.81, P/S Ratio: 3.53, P/B Ratio: 8.45, PEG Ratio: 1.04.

The median target price projected by analysts is $80.00, which means 40.3% upside potential from Tuesday's price of $57.02.

2) CH Robinson Worldwide Inc. (CHRW), a third-party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide.

On July 18, 2012, CH Robinson Worldwide Inc. was upgraded from Hold to Strong Buy at Avondale Partners, LLC.

The company has Return on Equity Ratio of 35.63%. Other market ratios: P/E Ratio: 20.91, Forward P/E Ratio: 17.20, P/S Ratio: 0.87, P/B Ratio: 7.33, PEG Ratio: 1.51.

The median target price projected by analysts is $68.00, which means 20.9% upside potential from Tuesday's price of $56.25.

3) HollyFrontier Corporation (HFC) operates as an independent petroleum refiner and marketer in the United States.

On July 17, 2012, HollyFrontier Corporation was upgraded from Strong Sell to Moderate Buy at Raymond James.

The company has Return on Equity Ratio of 33.97%. Other market ratios: P/E Ratio: 5.31, Forward P/E Ratio: 7.63, P/S Ratio: 0.40, P/B Ratio: 1.38, PEG Ratio: 0.33.

The median target price projected by analysts is $40.00, which means 16% upside potential from Tuesday's price of $34.49.

4) Continental Resources, Inc. (CLR) engages in the exploration, development, and production of crude oil and natural gas primarily in the north, south, and east regions of the United States.

On July 17, 2012, Continental Resources, Inc. was upgraded from Hold to Strong Buy at Canaccord Adams.

The company has Return on Equity Ratio of 30.90%. Other market ratios: P/E Ratio: 19.79, Forward P/E Ratio: 16.47, P/S Ratio: 6.55, P/B Ratio: 5.26, PEG Ratio: 2.47.

The median target price projected by analysts is $86.50, which means 24.2% upside potential from Tuesday's price of $69.66.

5) Basic Energy Services, Inc. (BAS) provides various well site services to oil and natural gas drilling and producing companies in the United States.

On July 15, 2012, Basic Energy Services, Inc. was upgraded from Market Perform to Market Outperform at Howard Weil.

The company has Return on Equity Ratio of 25.67%. Other market ratios: P/E Ratio: 4.55, Forward P/E Ratio: 7.62, P/S Ratio: 0.28, P/B Ratio: 1.02, PEG Ratio: 0.45.

The median target price projected by analysts is $14.25, which means 52.1% upside potential from Tuesday's price of $9.37.

Comparison Charts

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.

Click to enlargeCOH Chart

COH data by YCharts

The chart below shows Return on Equity history for the selected companies.

Click to enlargeCOH Return on Equity Chart

COH Return on Equity data by YCharts

This chart shows historical Return on Invested Capital ratio for the selected companies.

Click to enlargeCOH Return on Invested Capital Chart

COH Return on Invested Capital data by YCharts

This chart shows historical Net Profit Margin for the selected companies.

Click to enlargeCOH Profit Margin Chart

COH Profit Margin data by YCharts

Sources: Yahoo Finance, Google Finance, Finviz, YCharts.

Source: 5 Stocks With High Return On Equity And Recent Upgrades