Most investors pay attention to upgrades and downgrades on stocks they either own or are considering buying. Analysts follow the market for a living, so they do have a good feel for what is currently taking place with the overall market, and individual stocks that they follow.
Upgrades are a great sign that an analyst believes shares are either undervalued, or in other cases that a stock’s recent selling pressure has pushed shares into oversold territory, and the stock is once again offering decent value to investors.
While I do pay attention to the opinions of analysts who follow the same stocks I do, I also have seen enough bad recommendations to know that it is my responsibility to dig deeper and make sure that I do the needed homework on any stock before I simply follow the advice of analysts into new positions.
The market remains very strong, and with the major indexes still near record high levels, it is becoming harder and harder to find value, so a good place to start is with recent analyst upgrades. Let’s take a look at five recent upgrades, and whether or not each look like a good buy at this time.