Qualys (QLYS) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Qualys (QLYS) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2] Earnings Estimates and Stock Price Movement - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [3] - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to stock price movements based on their buying or selling actions [3] Qualys' Earnings Outlook - The upgrade for Qualys indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4] - For the fiscal year ending December 2024, Qualys is projected to earn $5.85 per share, representing an 11% increase from the previous year [7] - Over the past three months, the Zacks Consensus Estimate for Qualys has risen by 9.4% [7] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6] - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks are positioned for superior earnings estimate revisions [8][9]