Catalent (CTLT) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - Catalent (CTLT) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which significantly influences stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is a strong indicator of near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Catalent's Earnings Outlook - For the fiscal year ending June 2025, Catalent is expected to earn $1.36 per share, reflecting a 444% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Catalent has risen by 27.1%, indicating positive sentiment among analysts [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Catalent to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].