Sotherly Hotels(SOHO) ZACKS·2024-11-21 18:00Core Viewpoint - Sotherly Hotels (SOHO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are crucial for predicting near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to buying pressure and a potential rise in stock price [3][5]. Company-Specific Insights - Sotherly Hotels is projected to earn $0.69 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 1.5% [8]. - Over the past three months, the Zacks Consensus Estimate for Sotherly Hotels has risen by 7.8%, indicating a positive outlook from analysts [8]. Zacks Rank System - 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]. - Sotherly Hotels' upgrade to 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 [10][11].