3 Powerful Examples of the Zacks Rank: ERIE, DUOL, CART

Group 1: Core Insights - Stocks with rising earnings estimates have consistently outperformed the S&P 500, while those with falling estimates have underperformed [1] - The Zacks Rank classifies stocks into five groups based on earnings estimates, allowing investors to capitalize on trends in earnings revisions [2] Group 2: Erie Indemnity (ERIE) - Erie Indemnity is classified as a Zacks Rank 1 (Strong Buy) and has a bullish earnings outlook across all timeframes [3] - The company has a 7.4% five-year annualized dividend growth rate with a sustainable payout ratio of 50% [3] - Following its latest quarterly results, Erie Indemnity reported 40% earnings growth on 18% higher sales, beating the Zacks Consensus EPS estimate by an average of 12% [4] Group 3: Duolingo (DUOL) - Duolingo is also a Zacks Rank 1 (Strong Buy) with a forecasted 430% EPS growth and a 40% sales increase for the current fiscal year [6] - The company has shown double-digit year-over-year sales growth in each of the last ten quarters [6] - Since becoming a Zacks Rank 1 on August 9, Duolingo shares have gained 15%, outperforming the S&P 500's 2% gain [7] Group 4: Maplebear Inc. (CART) - Maplebear, known as Instacart, is a leading grocery technology company with a Zacks Rank 1 (Strong Buy) [9] - The company is expected to achieve 110% EPS growth and 11% higher sales for the current fiscal year [9] - Since obtaining the Zacks Rank 1 on August 9, shares of Maplebear have gained over 10% following positive earnings estimate revisions [11] Group 5: Conclusion - The examples of Erie Indemnity, Duolingo, and Maplebear illustrate that following the Zacks Rank can lead to market-beating gains due to positive earnings estimate revisions [13]