2 Stocks to Buy on New Analyst Coverage Defying Ongoing Volatility

Declining consumer confidence, geopolitical tensions and ongoing trade disputes are taking a toll on market indices. Trump’s tariff threats have further exacerbated global economic uncertainty. Meanwhile, inflationary pressures remain a key concern, with the Conference Board’s March consumer confidence index dropping to its lowest level in four years. Investor sentiment has been weighed down by recession fears and the potential for additional inflationary pressures stemming from tariff policies.

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 Steelcase Inc. SCS and United Fire Group, Inc. UFCS, likely drawing increased investor interest.

When 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.

Analyst 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.

The Number of Broker Ratings is greater than the Number of Broker Ratings four weeks ago (this will shortlist stocks that have recent new coverage).

Average Broker Rating less than Average Broker Rating four weeks ago (“less than” means “better than” four weeks ago).

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.

Price greater than or equal to $5 (as a stock below $5 will not likely create significant interest for most investors).

Average Daily Volume greater than or equal to 100,000 shares (if the volume isn’t enough, it will not attract individual investors).

Steelcase: Based in Grand Rapids, MI, this company provides a portfolio of furniture and architectural products and services in the United States and internationally. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Steelcase shares have lost 4.3% year to date (YTD) against the industry’s 14.2% growth. The fiscal 2026 earnings per share (EPS) estimate has increased to $1.12 from $1.06 over the past seven days, depicting analysts’ optimism over the company’s prospects. Again, Steelcase carries an impressive VGM Score of A.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

United Fire Group: Based in Cedar Rapids, IA, this company provides property and casualty insurance to individuals and businesses in the United States. The company currently sports a Zacks Rank #1.

United Fire Group shares have gained 4.2% YTD, underperforming the industry’s 15.9% rise. Yet, United Fire Group shares have gained 6.4% in a month, outperforming the industry’s 4.1%. The 2025 EPS estimate has increased to $2.42 from $2.20 over the past 60 days. United Fire Group surpassed earnings estimates in three of the trailing four quarters and missed on another occasion, with the average surprise being 75.5%. Again, United Fire Group carries a VGM Score of B.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.