Agreed that the first-quarter 2026 earnings season is in its nascent stage, but the start has nevertheless been impressive. Quite a few companies have come up with better-than-expected earnings per share and the trend may very well continue throughout the reporting cycle. In the meantime, uncertainty prevails, with the war in Iran continuing to grab headlines.
On Friday, oil prices dropped sharply, and stocks were buoyed by the announcement that the Strait of Hormuz was open again for commercial tankers, raising hopes for a peace deal. Over the weekend, the optimism faded, with Iran declaring the Strait, a vital route connecting the Persian Gulf to global markets, closed in response to the continuing U.S. Navy blockade.
Given this backdrop, investors would do well to keep a tab on broker-adored stocks like Archer Daniels Midland ADM, Bunge Global BG, ProFrac Holding ACDC, Cardinal Health CAH and Centene CNC.
We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy a well-rounded one.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
Archer Daniels has been actively managing productivity and innovation as well as aligning work to the interconnected trends in food security, health and wellbeing. The company’s Nutrition segment is showing signs of recovery, led by improving performance in Human Nutrition.
Archer Daniels, currently sporting a Zacks Rank #1 (Strong Buy), expects its 2026 earnings per share to increase 26% on a year-over-year basis. ADM’s earnings surpassed the consensus mark in each of the last four quarters. The average beat is 3.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bunge is a global agribusiness and food company worldwide. The company is executing a fundamental transformation anchored by the Viterra merger, expanding global origination, and processing scale and logistics efficiency. Management is prioritizing synergy capture, portfolio optimization and disciplined capital allocation to strengthen cash flows, reduce earnings volatility and enhance long-term returns across agricultural cycles.
Bunge, currently carrying a Zacks Rank #2 (Buy), expects its 2026 earnings per share to increase 8.1% on a year-over-year basis. BG’s earnings surpassed the consensus mark in each of the last four quarters. The average beat is 15.9%.
ProFrac Holding has a strong foothold in premium techniques and technology serving the energy industry. ProFrac Holding supplies technology and solutions mainly to exploration and production companies to extract resources more efficiently and cost-effectively using advanced fracking technology and services.
ProFrac’s well stimulation services are centered around key basins like the Permian, Eagle Ford, Haynesville, Appalachia, the Bakken and the Rockies, supporting future earnings growth. The expected long-term (3-5 years) EPS growth rate is an impressive 28.4%. ProFrac currently carries a Zacks Rank #2.
Cardinal Health, currently carrying a Zacks Rank #2, is expected to maintain its operational momentum in 2026, driven by steady performance across both its Pharmaceutical and Medical segments. In Pharmaceutical, growth will likely come from continued volume gains with large retail chains, strong specialty distribution and expanding partnerships with health systems.
Specialty therapeutics, particularly in oncology and chronic care, remain key revenue drivers, supported by Cardinal Health’s extensive distribution network and manufacturer service offerings. Rising biosimilar adoption and growing demand for patient support programs further strengthen the segment’s outlook. CAH’s earnings surpassed the consensus mark in each of the last four quarters. The average beat is 9.3%.
Missouri-based Centene’s revenue growth is driven by strong performance in its Medicare and Medicaid businesses, contributing to increased contract wins and expanding membership. The ongoing inclination for Medicare Advantage plans among the aging U.S. population continues to fuel consistent demand for Centene’s Medicare offerings.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.01 per share, which indicates a 44.7% rise from the year-ago figure. CNC’s earnings outpaced estimates in three of the last four quarters and missed the mark once, the average being 60.6%. The stock carries a Zacks Rank #3 (Hold).
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Archer Daniels Midland Company (ADM): Free Stock Analysis Report
Cardinal Health, Inc. (CAH): Free Stock Analysis Report
Bunge Global SA (BG): Free Stock Analysis Report
Centene Corporation (CNC): Free Stock Analysis Report
ProFrac Holding Corp. (ACDC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).