Earnings Estimate Revisions and Zacks Rank - Givaudan SA has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting an upward trend in earnings estimates, which is a powerful force impacting stock prices [1][4] - The Zacks Consensus Estimate for Givaudan has increased by 5.3% over the past three months, indicating steady upward revisions by analysts [6] - The Zacks Rank system, which relies solely on earnings estimate revisions, has a proven track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [12] Givaudan's Earnings Outlook - Givaudan's upgrade to Zacks Rank 1 positions it in the top 5% of Zacks-covered stocks, suggesting potential for near-term stock price appreciation [8] - The company is expected to earn $2.59 per share for the fiscal year ending December 2024, representing a year-over-year change of 19.9% [13] - The positive earnings outlook, as reflected in the Zacks upgrade, could have a favorable impact on Givaudan's stock price [10] Institutional Influence and Stock Price Movement - Changes in earnings estimates are strongly correlated with near-term stock price movements, partly due to the influence of institutional investors who use these estimates to calculate fair value [11] - Institutional investors' bulk investment actions, driven by changes in earnings estimates, lead to price movements for the stock [11]
What Makes Givaudan (GVDNY) a New Strong Buy Stock