LiveRamp (RAMP) Upgraded to Buy: What Does It Mean for the Stock?

Core Viewpoint - LiveRamp (RAMP) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. LiveRamp's Earnings Outlook - For the fiscal year ending March 2025, LiveRamp is projected to earn $1.63 per share, reflecting a 12.4% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for LiveRamp has risen by 23.3%, indicating a positive trend in earnings expectations [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of LiveRamp to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].