All You Need to Know About Compass Group (CMPGY) Rating Upgrade to Buy

Core Viewpoint - Compass Group PLC (CMPGY) 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][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are crucial for predicting near-term stock price movements [2][4]. - The recent upgrade reflects an improvement in Compass Group's earnings outlook, likely leading to increased buying pressure and a rise in stock price [3][5]. Earnings Estimate Revisions - Compass Group is projected to earn $1.20 per share for the fiscal year ending September 2024, representing a year-over-year increase of 13.2% [8]. - Over the past three months, the Zacks Consensus Estimate for Compass Group has risen by 0.8%, indicating a positive trend in earnings estimates [8]. 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 [7]. - The upgrade to Zacks Rank 2 places Compass Group in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].