What Makes Broadridge Financial (BR) a New Buy Stock

Core Viewpoint - Broadridge Financial Solutions (BR) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][4]. - Institutional investors rely on earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [4]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade suggest an improvement in Broadridge Financial's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. - For the fiscal year ending June 2025, Broadridge is expected to earn $8.51 per share, reflecting a 10.1% increase from the previous year, with a 1.4% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system categorizes 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 of Broadridge Financial to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].