Flowers Foods(FLO) ZACKS·2024-08-21 17:02Core Viewpoint - Flowers Foods (FLO) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, with a strong correlation between earnings estimate revisions and near-term stock performance [4][6]. - For the fiscal year ending December 2024, Flowers Foods is expected to earn $1.25 per share, reflecting a 4.2% increase from the previous year, with a 0.6% rise in the Zacks Consensus Estimate over the past three months [8]. Investment Implications - The upgrade indicates a positive outlook for Flowers Foods' earnings, which could lead to increased buying pressure and a rise in stock price [3][5]. - The Zacks Rank system, which categorizes stocks based on earnings estimates, has a proven track record, with Zacks Rank 1 stocks averaging a +25% annual return since 1988, suggesting that Flowers Foods' upgrade positions it for potential market-beating returns [7][10].