Aflac (AFL) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - Aflac (AFL) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings potential, which is expected to positively influence its stock price [1][2]. Earnings Estimates and Revisions - Aflac is projected to earn $6.75 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 8.4% [5]. - Over the past three months, the Zacks Consensus Estimate for Aflac has risen by 4.6%, indicating a trend of increasing earnings estimates [5]. Impact of Institutional Investors - Changes in earnings estimates are closely correlated with stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [3]. - An increase in earnings estimates typically leads to higher fair value calculations for stocks, prompting institutional buying or selling, which drives stock price changes [3]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. - Aflac's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [7].