Tennant (TNC) Upgraded to Strong Buy: Here's Why

Core Viewpoint - The recent upgrade of Tennant to a Zacks Rank 1 (Strong Buy) indicates a positive outlook on its earnings, which is expected to influence its stock price favorably [2][5][14] Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which have shown a strong correlation with near-term stock price movements [3][9] - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price changes when estimates are revised [3] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4] - Tennant's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for price appreciation [14] Recent Earnings Estimates for Tennant - For the fiscal year ending December 2024, Tennant is expected to earn $6.56 per share, reflecting a slight decrease of -0.2% from the previous year [10] - Over the past three months, the Zacks Consensus Estimate for Tennant has increased by 1.9%, indicating a positive trend in earnings expectations [12]