5 Broker-Loved Stocks to Keep an Eye on Amid Trade Tensions

Core Viewpoint - The U.S. is experiencing heightened tariff tensions, particularly affecting major trading partners like Canada, Mexico, and China, leading to retaliatory measures and increased trade volatility [1][2]. Group 1: Market Impact - The trade war is expected to create increased volatility and uncertainty in U.S. equity markets, but investors are encouraged to remain engaged with stocks [2]. - A screening process has been developed to identify stocks with improving broker recommendations and upward revisions in earnings estimates over the past four weeks [3]. Group 2: Screening Criteria - The screening criteria include net upgrades in broker ratings, percentage change in earnings estimates, and price-to-sales ratios, focusing on companies in the bottom 10% of this ratio [4][5]. - Additional criteria include a stock price greater than $5, an average daily volume exceeding 100,000 shares, and a market value ranking in the top 3000 [5]. Group 3: Selected Stocks - Cardinal Health (CAH) is a nationwide drug distributor with an expected earnings growth rate of 5.4% for the current year, and its earnings estimates have improved by 1.5% over the last 60 days [6][7]. - DXC Technology is benefiting from its digital business and partnerships, with a 5.4% increase in earnings estimates over the past 60 days and a strong earnings surprise history [7][8]. - Cross Country Healthcare (CCRN) is experiencing growth in its home care staffing business and has a Zacks Rank of 3, with earnings surpassing estimates in three of the last four quarters [9]. - Avnet (AVT) is capitalizing on the defense and data center markets, with a focus on Internet of Things capabilities and a Zacks Rank of 3 [10][11]. - Asbury Automotive Group (ABG) is leveraging its diversified product mix and e-commerce platform for growth, with a recent increase in earnings estimates [11][12].