HNI (US:HNI) ZACKSยท2024-07-19 17:01Core Viewpoint - HNI has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive earnings outlook that could enhance its stock price [1][2]. Earnings Estimates and Business Outlook - The upgrade reflects an upward trend in earnings estimates, suggesting an improvement in HNI's underlying business [3][9]. - For the fiscal year ending December 2024, HNI is expected to earn $3.10 per share, representing a 17% increase from the previous year [9]. Zacks Rank System and Stock Performance - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - HNI's upgrade places it in the top 5% of Zacks-covered stocks based on estimate revisions, indicating potential for near-term stock price increases [5][10]. Institutional Investor Influence - Changes in earnings estimates significantly impact stock prices due to institutional investors using these estimates to calculate fair value, leading to buying or selling actions that affect stock movements [7].