Grupo Supervielle(SUPV) ZACKS·2024-08-26 17:01Zacks Rating Upgrade - Grupo Supervielle has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting an upward trend in earnings estimates, which is a powerful force impacting stock prices [1] - The Zacks rating system is based on changes in a company's earnings picture, specifically the Zacks Consensus Estimate for current and future years [1] - The upgrade indicates positivity about Grupo Supervielle's earnings outlook, which could lead to buying pressure and an increase in its stock price [3] Earnings Estimate Revisions - Changes in a company's future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4] - Institutional investors use earnings estimates to calculate the fair value of a company's shares, and their transactions can lead to price movements [4] - For Grupo Supervielle, rising earnings estimates and the consequent rating upgrade signify an improvement in the company's underlying business, which should push the stock higher [5] Zacks Rank System - 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 stocks receiving a 'Strong Buy' rating [9] - Grupo Supervielle's placement in the top 5% of Zacks-covered stocks indicates superior earnings estimate revisions, making it a strong candidate for market-beating returns [10] Grupo Supervielle's Earnings Estimates - Grupo Supervielle is expected to earn $1.11 per share for the fiscal year ending December 2024, representing a year-over-year change of 37% [8] - Over the past three months, the Zacks Consensus Estimate for the company has increased by 9.4% [8]