Outfront Media (OUT) Upgraded to Buy: Here's Why

Core Viewpoint - The recent upgrade of Outfront Media to a Zacks Rank 2 (Buy) reflects a positive earnings outlook, which is expected to lead to increased buying pressure and a rise in stock price [2][8]. Earnings Estimates and Stock Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which is a measure of EPS estimates from sell-side analysts, indicating a company's changing earnings picture [1]. - There is a strong correlation between changes in earnings estimates and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [3][12]. - Over the past three months, the Zacks Consensus Estimate for Outfront Media has increased by 2.2%, indicating a positive trend in earnings estimates [13]. Zacks Rank System - The Zacks Rank stock-rating 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 [4]. - Outfront Media's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting it is a solid candidate for market-beating returns in the near term [7][15]. Business Improvement Indicators - The upward trend in earnings estimates for Outfront Media implies an improvement in the company's underlying business, which should lead to higher stock prices as investors respond positively [11].