All You Need to Know About Build-A-Bear (BBW) Rating Upgrade to Buy

Core Viewpoint - Build-A-Bear (BBW) 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][2]. Earnings Outlook - The Zacks rating upgrade reflects a positive outlook on Build-A-Bear's earnings, which is expected to positively impact its stock price [2]. - The company is projected to earn $3.72 per share for the fiscal year ending January 2025, indicating a year-over-year increase of 8.8% [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for Build-A-Bear has risen by 2.8%, indicating a trend of increasing earnings estimates [5]. - The correlation between earnings estimate revisions and near-term stock movements is strong, suggesting that tracking these revisions can be beneficial for investment decisions [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [4]. - Build-A-Bear's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [7].