This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Watch these 3 stock upgrades for investment ideas

Chris Lau, Kapitall: Stock upgrades can mean higher volatility but not necessarily higher return. Answer? Add to your watch list.

When a stock gets an analyst upgrade, the price appreciation that follows could mean profit taking shortly afterwards. Despite the short term volatility, investors might get better performance by simply adding upgraded stocks to their watch list. Once the activity dies down, investors might find a better entry point.

Read more from Kapitall: Try these 7 rallying Indian stocks as country gears up for elections

In the 3D printing sector, Stratasys (SSYS) is slightly above $100. The stock is down 27 percent from its 52 week high reached at the start of 2014. Goldman Sachs took a liking to the company by starting coverage of Stratasys as a “buy.” 3D Systems (DDD) is even more attractive, since its shares are down 50 percent from its high.

In the software sector, VMware, Inc. (VMW) is a mere 8.6 percent from its yearly high. It was recently upgraded to Outperform from Crédit Lyonnais Securities Asia (“CLSA”). Demand for virtualization software is likely to remain strong, because it helps corporations reduce the cost of managing physical servers. When VMware reports on April 22, 2014, analysts expect the company to earn $0.79 per share.

F5 Networks (FFIV), whose shares are also slightly below a yearly high, was upgraded by Stifel to “buy.” Channel checks were cited by analysts as having improving trends. F5 and VMware have an ongoing collaboration agreement to jointly develop security and access control solutions for customers.


3D printing companies remain expensive investing ideas, despite a pullback in their shares from yearly highs. F5 and VMware are more conservative investments, and are expected to deliver a strong quarter. The firms may even provide a strong guidance, which will mean more upside for investors.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs