The weak July jobs data has reduced the chances of the Fed increasing interest rates at its September meeting to curb inflation in the United States. According to the July 2026 employment report, nonfarm payrolls declined by 23,000 against expectations of an 80,000 increase. Macroeconomic challenges stemming from the crisis in the Middle East have driven energy prices higher and increased operating costs, weighing on the report.
However, the disappointing jobs data has been favorable for equities, with the unemployment rate remaining relatively low at 4.1%. As soft U.S. employment data reshapes interest-rate expectations and boosts markets, investors may want to capitalize on the situation by keeping broker-favorite stocks such as Avnet AVT, RXO, Inc. RXO, Forward Air FWRD, Air Canada ACDVF and AMN Healthcare Services AMN on their radar.
Since brokers closely track the stocks they cover, they revise their earnings estimates after thoroughly assessing the positive and negative implications of an event for the company concerned. Consequently, these estimate revisions serve as an important indicator of a stock’s price prospects. Given their extensive expertise, brokers are regarded as investment professionals with in-depth knowledge and a clear understanding of the intricacies of the investment landscape. Therefore, investors would be well advised to pay attention to such carefully researched information to reduce the risk of seeing their hard-earned money invested in the stock market go down the drain.
Screening Parameters
# (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).
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 concerning this ratio).
Current Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).
Com/ADR/Canadian= Com (This eliminates the ADR and Canadian stocks).
Here are five of the 10 stocks that made it through the screen:
Based in Phoenix, AZ, Avnet is one of the world’s largest distributors of electronic components and computer products. The company’s customer base includes original equipment manufacturers, electronic manufacturing services providers, original design manufacturers and value-added resellers.
Avnet sports a Zacks Rank #1 (Strong Buy) currently. AVT surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters. The average beat is 13.8%.
You can see the complete list of today’s Zacks #1 Rank stocks here
RXO is an asset-light, technology-enabled brokered transportation platform moving freight across North America. Supply-tightening, rising contract rates and AI-enabled productivity are aiding the transportation company.
RXO, currently carrying a Zacks Rank #3 (Hold), surpassed the Zacks Consensus Estimate for earnings in one of the last four quarters, missed the mark twice and reported in-line earnings once. The average miss is 22.9%.
Forward Air is a trucking company. It recently inked a non-binding memorandum of understanding with one of its largest customers regarding the continued provision of services (the MOU covers services that the customer had planned to shift to other providers as part of an effort to diversify its list of vendors). Under the MOU, Forward Air expects to retain at least half of the approximately $250 million in revenues attributable to the customer for 2025, with the potential to retain an additional approximately 25%.
FWRD, currently carrying a Zacks Rank #3, surpassed the Zacks Consensus Estimate for earnings in one of the last four quarters and missed the mark thrice. The average beat is 82%.
Air Canada has been benefiting from the impressive scenario in air travel demand. Volatile fuel prices and high labor costs represent major headwinds. The Zacks Consensus Estimate for 2026 sales has increased 7.4% on a year-over-year basis.
ACDVF surpassed the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two, the average beat being 51.4%. ACDVF currently carries a Zacks Rank #3.
AMN Healthcare Services, a leader and innovator in total talent solutions for healthcare, carries a Zacks Rank #3 presently. The company has a trailing four-quarter earnings surprise of 96.6%, on average.
Shares of AMN have surged 132.4% year to date. Changes in demand for healthcare services, particularly at acute care hospitals and other inpatient facilities, continue to boost demand for AMN Healthcare’s services. The company’s business is supported by long-term structural drivers including population growth, aging demographics and the increasing complexity of care delivery.
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Avnet, Inc. (AVT): Free Stock Analysis Report
Forward Air Corporation (FWRD): Free Stock Analysis Report
AMN Healthcare Services Inc (AMN): Free Stock Analysis Report
Air Canada (ACDVF): Free Stock Analysis Report
RXO INC (RXO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).