5 Must-Watch Stocks Favored by Brokers as 2H25 Begins

Brokers favor Cracker Barrel (CBRL), BGSF, ArcBest (ARCB), Cardinal Health (CAH), and AutoNation (AN) for the second half of 2025, identified through a screening strategy prioritizing improving broker recommendations, upward earnings estimate revisions, and attractive price-to-sales ratios. This selection aligns with an optimistic market outlook for 2H25, buoyed by easing trade tensions, cooling inflation potentially leading to rate cuts, and sustained interest in artificial intelligence. These companies exhibit strong individual fundamentals and positive analyst sentiment, positioning them for potential outperformance.

Analysis

A quantitative screening strategy leveraging positive broker sentiment and value metrics has identified five stocks poised to potentially benefit from an improving macroeconomic outlook in the second half of 2025. The backdrop is characterized by easing trade tensions, cooling inflation, and the prospect of Fed rate cuts, which could provide tailwinds for equities. The screen specifically targets companies with net broker rating upgrades and upward earnings estimate revisions over the past four weeks, combined with a low price-to-sales ratio, indicating both positive momentum and attractive valuation. The selected companies represent a diverse set of industries. Cracker Barrel (CBRL) and BGSF (BGSF) stand out with Zacks #1 (Strong Buy) ratings, supported by CBRL's 68.5% average earnings beat and BGSF's greater than 300% upward revision in current-year earnings estimates. Cardinal Health (CAH) demonstrates consistency, having surpassed earnings estimates for four consecutive quarters by an average of 10.3%. In contrast, ArcBest (ARCB) and AutoNation (AN) present a more mixed picture of historical earnings delivery, missing estimates in three and two of the last four quarters, respectively, despite ARCB offering strong forward guidance of 52.1% EPS growth for 2026 and AN possessing a diversified business model.

Key Decisions for Investors

• Investors should consider the identified stocks, particularly BGSF and CBRL, as they exhibit the strongest combination of positive earnings estimate revisions, broker upgrades, and recent performance momentum.
• Evaluate the risk-reward profile by differentiating between consistent performers like Cardinal Health and turnaround or growth stories like ArcBest, whose strong 2026 guidance is juxtaposed with recent earnings misses.
• For a value-oriented approach, these stocks warrant attention as their selection was filtered by a low price-to-sales ratio, potentially offering an attractive entry point if the optimistic macroeconomic scenario for 2H25 unfolds.
• Note the neutral 'Hold' rating and mixed earnings history for AutoNation, suggesting a more cautious stance may be warranted here compared to the 'Buy' rated names on the list, despite its inclusion in the screen.