Zacks.com featured highlights Shore Bancshares and Ethan Allen Interiors

For Immediate ReleaseChicago, IL – February 27, 2025 – Stocks in this week’s article are Shore Bancshares, Inc. SHBI and Ethan Allen Interiors Inc. ETD.Top 2 Stocks to Benefit from New Analyst Coverage Amid VolatilityThe 2025 stock market has been turbulent due to geopolitical tensions, weaker consumer confidence, and trade disputes. Trump's strict tariffs have added to global uncertainty. In AI, DeepSeek has emerged as a strong competitor to OpenAI, Google DeepMind, and Anthropic, disrupting the industry with cost-efficient models. Meanwhile, inflation concerns persist, with the Conference Board’s February consumer confidence index seeing its steepest drop since August 2021.Amid market instability, new analyst coverage helps investors navigate changing conditions by identifying opportunities and risks. Fresh coverage often boosts liquidity, validates investment theses, and influences stock prices.Two stocks recently gaining analyst attention are Shore Bancshares, Inc. and Ethan Allen Interiors Inc., likely drawing increased investor interest.Why Analyst Coverage Commands AttentionWhen analysts at leading firms initiate coverage on a stock, they bring with them a network of institutional clients and comprehensive financial analysis. They are often experts in specific industries or sectors, leveraging their specialized knowledge to conduct in-depth research and analysis. Analysts provide investors with crucial insights into a company’s financial performance, growth prospects, competitive position, and industry dynamics—information that can be challenging for individual investors to obtain on their own.Do analysts add value to companies by initiating coverage? Absolutely. Their role as intermediaries grants them access to a wealth of relevant data, which they refine into actionable insights. Many investors rely heavily on analysts’ research, recognizing that a lack of information could lead to market inefficiencies.Stocks selected for coverage are not chosen arbitrarily. New coverage generally reflects the analyst’s confidence in the company’s prospects. Sometimes, heightened investor interest in a particular stock prompts analysts to focus on it, aligning their efforts with market demand. Consequently, ratings for newly covered stocks often tend to be more favorable compared to those of stocks that are already under continuous coverage.Furthermore, a shift in the average broker recommendation holds more significance than an isolated recommendation change. When an analyst issues a recommendation for a company with minimal or no existing coverage, it often captures investors' attention. This, in turn, can attract portfolio managers to take positions in the stock as additional information surfaces.How Analyst Coverage Impacts Stock PerformanceAnalyst coverage can significantly impact stock performance by triggering various market reactions. The announcement of new coverage can cause immediate fluctuations in stock prices. Positive ratings can attract bullish investors, while neutral or negative ratings may spark sell-offs. Meanwhile, consistent, positive coverage from multiple analysts can contribute to sustained investor confidence, potentially leading to higher valuations. Conversely, if the coverage reveals previously unrecognized risks, it can hinder long-term performance.Overall, new analyst coverage can act as a spotlight, illuminating stocks that might otherwise go unnoticed. Whether you’re discovering a hidden gem or gaining a fresh perspective on a well-known company, these reports can be a powerful addition to your investment toolkit.Are there newly covered stocks on your radar? Now might be the perfect time to dig deeper and uncover your next winning investment.So, it’s a good strategy to bet on stocks that have seen increased analyst coverage over the last few weeks.Increased analyst coverage and improving average rating are the primary criteria of this strategy, but one should also consider other relevant parameters to make it foolproof.Here are two stocks that passed the screen:Shore Bancshares: Based in Easton, MD, this company operates as a bank holding company for Shore United Bank, N.A. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.SHBI shares have gained 34.5% in the past year compared with the industry’s 27.2% rise. The 2025 earnings per share (EPS) estimate has increased to $1.59 from $1.46 over the past 30 days, depicting analysts’ optimism over the company’s prospects. This company surpassed earnings estimates in all the trailing four quarters, with the average surprise being 22.2%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Ethan Allen Interiors: Based in Danbury, CT, this company operates as an interior design firm, and manufacturer and retailer of home furnishings in the United States and internationally. The company currently carries a Zacks Rank #2 (Buy).ETD shares have lost 10.9% in the past year against the industry’s 3.7% growth. The fiscal 2025 EPS estimate has increased to $2.32 from $2.30 over the past 30 days. Again, it carries an impressive Value Score of A.You can get the remaining stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your trading. Further, you can also create your strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial of the Research Wizard today.For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2422155/top-2-stocks-to-benefit-from-new-analyst-coverage-amid-volatilityFollow us on Twitter:  https://www.twitter.com/zacksresearchJoin us on Facebook:  https://www.facebook.com/ZacksInvestmentResearchZacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Contact: Jim GiaquintoCompany: Zacks.comPhone: 312-265-9268Email: pr@zacks.comVisit: https://www.zacks.com/Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Shore Bancshares Inc (SHBI): Free Stock Analysis Report Ethan Allen Interiors Inc. (ETD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks