First Citizens (FCNCA) Moves to Buy: Rationale Behind the Upgrade

Core Viewpoint - First Citizens BancShares (FCNCA) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [3][5]. - An increase in earnings estimates typically leads to higher fair value calculations for stocks, prompting institutional investors to buy or sell accordingly, thus affecting stock prices [3]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade for First Citizens indicate an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [4][9]. Earnings Estimate Revisions for First Citizens - For the fiscal year ending December 2024, First Citizens is projected to earn $200.92 per share, reflecting a 14.7% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for First Citizens has risen by 6.5%, indicating a positive trend in earnings expectations [7]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [6]. - The upgrade of First Citizens to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [8][9].