Downgrade by brokerages is the final green flag for contrarians? 4 IT stocks which may deliver between 24 to 30% returns
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9 months ago
In the last three days, one of the well-respected brokerage houses has come out with two reports in which they downgraded two sectors to underperform. One metal and other IT. As the market is under the profit booking phase, these stocks also declined, so an impression is created that probably what the brokerage is saying is correct. Before one takes action based on these reports, some questions need to be answered. First, why downgrade a sector now given the fact that it has been underperforming for more than two years? Secondly is this the first downgrade, such downgrades have been happening in the past, but stocks have not seen any serious correction. Also while brokerage is downgrading the stock, other news reports are indicating the worst might be over. So, probably it is time for contrarian investors to bring some stocks on their watch list. Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk, and price momentum to generate standardized scores.
Economic Times