Gambling.com (GAMB) ZACKS·2025-01-03 18:16Core Viewpoint - Gambling.com Group Limited (GAMB) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, indicating potential for stock price increase [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Gambling.com is projected at $0.88 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 76% [9]. - Over the past three months, the Zacks Consensus Estimate for Gambling.com has risen by 4%, indicating positive sentiment among analysts [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is a key driver of stock price movements [2][3]. - The system classifies stocks into five groups, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating, highlighting superior earnings estimate revisions [10][11]. - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 1988, showcasing the effectiveness of the rating system [8]. Market Implications - The upgrade to Zacks Rank 2 positions Gambling.com in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11]. - Rising earnings estimates are correlated with increased buying pressure from institutional investors, which can lead to significant stock price movements [5][6].