U.S. equities have remained firmly positive so far this year despite elevated Treasury yields, oil above $100, sticky inflation, tariff uncertainty and narrow market breadth. September’s Federal Reserve rate hike tightened financial conditions, though weaker jobs data has since reduced expectations for another near-term hike. Resilient earnings and renewed AI-led tech strength have kept major indexes near record highs despite macroeconomic risks and volatility.
Amid this backdrop, choosing the right stock can become difficult. One way to simplify this task is to follow brokers’ recommendations. Stocks like Dollar General Corporation DG, Bristol-Myers Squibb Company BMY and Equinor ASA EQNR are worth betting on.
Broker recommendations are usually supported by extensive research, including management discussions, regulatory filings, earnings calls, channel checks and industry analysis. This helps analysts assess a company’s fundamentals alongside macro trends, sector conditions, competitive positioning and peer performance.
A broker rating upgrade typically reflects a more favorable outlook, often driven by developments not yet fully captured in consensus estimates or valuation. It may therefore signal improving earnings expectations, valuation perceptions or investor sentiment.
Still, broker rating upgrades should not be viewed in isolation. They are most useful when evaluated alongside fundamentals, earnings trends and valuation, forming part of a broader and disciplined investment framework.
Selecting the Winning Strategy
We have a screening strategy that may help you identify potential winners.
Broker Rating Upgrades (Four Weeks) of 1% or More: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the past four weeks.
Current Price Greater Than $5: The stocks must trade above $5.
Average 20-Day Volume Greater Than 100,000: A large trading volume guarantees that the stock is easily tradable.
Zacks Rank Equal to #1 (Strong Buy) or 2 (Buy): Despite good or bad market conditions, stocks with a Zacks Rank #1 or 2 have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
3 Stocks With Upgraded Broker Ratings to Invest
Goodlettsville, TN-based Dollar General is one of the largest discount retailers in the United States. DG’s merchandise includes national brands from leading manufacturers and private brand offerings that are priced at discounts to many comparable national brands.
DG’s fiscal 2027 earnings are expected to grow 15.9% year over year. Dollar General, which currently sports a Zacks Rank #1, has witnessed a 3.2% upward revision in broker ratings over the past four weeks.
Bristol-Myers, based in New Jersey, is one of the leading global specialty biopharmaceutical companies focused on developing treatments targeting severe diseases. BMY offers products for oncology, hematology, immunology, cardiovascular and neuroscience indications.
Bristol-Myers’ 2026 earnings are projected to increase 12.4% year over year. BMY, carrying a Zacks Rank #2 at present, has seen a 3.2% increase in broker ratings over the past four weeks.
Headquartered in Stavanger, Norway, Equinor ASA is an integrated energy company, with operations across 30 countries and the largest supplier of pipeline gas to Europe. EQNR is a leading seller of crude oil.
EQNR’s 2026 earnings are expected to soar 120.7% year over year. Equinor ASA, which currently carries a Zacks Rank #2, has witnessed a 10.5% upward revision in broker ratings over the past four weeks.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>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
Bristol Myers Squibb Company (BMY): Free Stock Analysis Report
Dollar General Corporation (DG): Free Stock Analysis Report
Equinor ASA (EQNR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).