With first-quarter 2016 earnings lined up for release, the drastic downward revision in estimates seem to have dimmed hopes of a rosy first half or even a turnaround going ahead in the year.

In fact, the overall earnings picture for the quarter appears gloomy with estimates remaining low. Moreover, challenges are expected to plague the earnings performance in the current as well as upcoming quarters, with growth unlikely before late 2016.

Notably, over the last three months, Q1 estimates have fallen steeply, with the most prominent dampener being the slump in oil prices during the first six weeks of the year. Further, a strong u.s. dollar and lackluster global growth – particularly in China and other emerging markets – have made matters worse.

Thus, in the face of such lackluster earnings backdrop along with the renewed weakness in oil and other commodity prices, global growth concerns seem to be looming large.

The apprehensions have not spared the brokers as well, who have been indiscriminately downgrading stocks, mirroring the widespread concern. Thus, it might be prudent to assess the long-term fundamentals of the stock before dismissing them completely.

Zacks to the Rescue

There are a wide range of stocks thronging the investment space, and it is by no means an easy task for investors to choose stocks that have been downgraded by brokers and yet bear the potential.

Thus, to guide investors to the right picks, we recommend them to select stocks that carry a favorable Zacks Rank.

The Zacks Rank is a reliable tool that helps you to trade with confidence regardless of your trading style and risk tolerance.

Hence, with the help of the Zacks Stock Screener, we have zeroed-in on five stocks that carry the bearish sentiment of over 80% of brokerage firms yet flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).