Lument (LFT) Moves to Buy: Rationale Behind the Upgrade

Core Viewpoint - Lument Finance (LFT) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which are crucial for stock price movements [1][2][4]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [3][5]. - For the fiscal year ending December 2024, Lument is expected to earn $0.43 per share, reflecting a 65.4% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for Lument has increased by 3.2% [7]. Zacks Rank System - The Zacks Rank system classifies 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 [6]. - Lument's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].