Sometimes in life, in fact more often than not, the best things tend to get overlooked when flanked by a plethora of mediocres. This phenomenon can be witnessed in stock investing too. Brokers sometimes fail to appreciate a few potential stocks amid an oversupply of average performers. These under-loved stocks can, at times, hold strong growth prospects.

Though a broker’s recommendation on a particular stock should not be relied upon blindly, one cannot also rule out the importance of such recommendations. The average of all brokerage recommendations on a stock definitely tells something about potential.

In fact, when the current average recommendation on a stock is bearish but the stock price continues to move higher, it implies that investors are somehow optimistic about the potential of the stock and not concerned about the brokers’ negative stance. Betting on these stocks could be a good strategy as the rally will attract more investors, leading to a further rise in its price. In addition, if the stock holds strong potential for growth, the rally is likely to sustain in the long run.
    
3 Under-Loved Stocks to Buy

We hereby zeroed in on three stocks that have average broker recommendation of #3 (Hold) or #4 (Sell) or #5 (Strong Sell), a Zacks Rank #1 (Strong Buy) or 2 (Buy), year-to-date price change of more than 10%, and a positive change in consensus EPS estimate for the current fiscal year over the past 4 weeks, a Growth Style Score ‘A’ or ‘B.’ (Click here to know about our style score system).

ANA Holdings Inc. (ALNPY – Snapshot Report)

This Tokyo-based airline transportation company offers scheduled & unscheduled air passenger as well as air courier services. Moreover, it provides services related to buying, selling, leasing, and maintenance of aircraft and related parts, apart from providing transportation ground support for aircraft.

Zacks Rank #2
Growth Score: B
Price Change (YTD): 15.23%
Change in F1 Estimate (4 Weeks): 16.67%
Current Average Broker Recommendation: 4