Janus Henderson(US:JHG) ZACKSยท2024-09-17 17:01Core Viewpoint - Janus Henderson Group plc (JHG) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which are a significant factor influencing stock prices [1][4][6]. Earnings Estimates and Ratings - The Zacks rating system focuses on changes in earnings estimates, tracking EPS estimates from sell-side analysts to create a consensus measure known as the Zacks Consensus Estimate [2]. - The recent upgrade reflects an improvement in Janus Henderson Group's earnings outlook, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Institutional Investors - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [5]. - An increase in earnings estimates typically results in a higher fair value for the stock, prompting institutional investors to buy, which drives the stock price up [5]. Earnings Estimate Revisions - Janus Henderson Group is projected to earn $3.23 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 22.8% [9]. - Over the past three months, the Zacks Consensus Estimate for the company has risen by 8.5%, indicating a positive trend in earnings estimates [9]. 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 [8]. - The upgrade of Janus Henderson Group to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].