Starwood Property Trust (STWD) Upgraded to Strong Buy: Here's Why

Core Viewpoint - Starwood Property Trust (STWD) has received a Zacks Rank 1 (Strong Buy) upgrade due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Rising earnings estimates indicate an improvement in the underlying business of Starwood Property Trust, suggesting potential for stock price appreciation [5][10]. 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 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [9][10]. Earnings Estimate Revisions for Starwood Property Trust - Starwood Property Trust is projected to earn $2.02 per share for the fiscal year ending December 2024, reflecting a year-over-year change of -1.5% [8]. - Over the past three months, the Zacks Consensus Estimate for Starwood Property Trust has increased by 1.1% [8].