All You Need to Know About Tapestry (TPR) Rating Upgrade to Strong Buy

Zacks Rating Upgrade for Tapestry - Tapestry (TPR) has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting a positive earnings outlook [1] - The upgrade is driven by an upward trend in earnings estimates, which is a powerful factor influencing stock prices [1][4] - The Zacks rating system relies on changes in a company's earnings picture, tracking EPS estimates through the Zacks Consensus Estimate [1] Earnings Estimate Revisions and Stock Price Impact - Changes in earnings estimates are strongly correlated with near-term stock price movements, as institutional investors use these estimates to calculate fair value [4] - Rising earnings estimates for Tapestry indicate an improvement in the company's underlying business, which could push the stock higher [5] - Empirical research shows a strong correlation between earnings estimate revisions and near-term stock movements, making tracking such revisions rewarding [6] Tapestry's Earnings Outlook - For the fiscal year ending June 2025, Tapestry is expected to earn $4.58 per share, a 6.8% increase from the previous year [8] - Over the past three months, the Zacks Consensus Estimate for Tapestry has increased by 2.4% [8] Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7] - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, and Tapestry's upgrade places it in this elite group [9][11] - The Zacks system maintains an equal proportion of 'buy' and 'sell' ratings, ensuring a balanced approach across its universe of over 4000 stocks [9]