All You Need to Know About Sunrun (RUN) Rating Upgrade to Strong Buy

Zacks Rating Upgrade for Sunrun - Sunrun has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive earnings outlook and potential stock price increase [1][3] - The upgrade is driven by an upward trend in earnings estimates, which is a powerful force impacting stock prices [1][4] - The Zacks Rank system tracks the Zacks Consensus Estimate, reflecting the consensus EPS estimates from sell-side analysts [1] Earnings Estimate Revisions and Stock Price Movement - Changes in a company's future earnings potential, reflected in earnings estimate revisions, strongly correlate with near-term stock price movements [4] - Institutional investors use earnings estimates to calculate fair value, leading to bulk investment actions that influence stock prices [4] - For Sunrun, rising earnings estimates and the consequent rating upgrade indicate an improvement in the company's underlying business, which should push the stock higher [5] Zacks Rank System and Its Effectiveness - The Zacks Rank system uses four factors related to earnings estimates to classify stocks into five groups, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7] - The system maintains an equal proportion of 'buy' and 'sell' ratings, with only the top 5% of Zacks-covered stocks receiving a 'Strong Buy' rating [9][10] - Sunrun's placement in the top 5% of Zacks-covered stocks indicates superior earnings estimate revision features, making it a strong candidate for market-beating returns [10] Sunrun's Earnings Estimate Revisions - Sunrun is expected to earn -$0.85 per share for the fiscal year ending December 2024, representing a year-over-year change of 88.1% [8] - Over the past three months, the Zacks Consensus Estimate for Sunrun has increased by 47.7%, reflecting steady upward revisions by analysts [8] Conclusion - The Zacks Rank upgrade for Sunrun reflects positivity about its earnings outlook, which could translate into buying pressure and an increase in its stock price [3][10] - The Zacks Rank system's focus on earnings estimate revisions provides a reliable method for identifying stocks with strong near-term potential [6][7]