1st Source (SRCE) ZACKS·2024-08-02 17:01Core Viewpoint - 1st Source (SRCE) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive earnings outlook that could lead to increased buying pressure and stock price appreciation [1][3]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for 1st Source is projected at $5.36 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 6.6% [8]. - Over the past three months, analysts have raised their earnings estimates for 1st Source by 10.8% [8]. Zacks Rating 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 [7]. - The upgrade of 1st Source to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for near-term price movement [10]. Market Dynamics - Changes in earnings estimates are strongly correlated with stock price movements, particularly influenced by institutional investors who adjust their valuations based on these estimates [4]. - Rising earnings estimates and the corresponding rating upgrade suggest an improvement in 1st Source's underlying business, which should be reflected in higher stock prices [5].