Pagaya Technologies .(PGY) ZACKS·2025-01-03 18:16Zacks Rating Upgrade - Pagaya Technologies Ltd (PGY) has been upgraded to a Zacks Rank 2 (Buy), reflecting an upward trend in earnings estimates, which is a powerful force impacting stock prices [1] - The Zacks rating system is highly useful for individual investors as it tracks the Zacks Consensus Estimate for current and future years, providing a more objective measure compared to Wall Street analysts' subjective ratings [2][3] Earnings Estimate Revisions - Changes in a company's future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4] - Institutional investors use earnings estimates to calculate the fair value of a company's shares, and revisions in these estimates lead to buying or selling, causing stock price movements [4] - Rising earnings estimates and the consequent rating upgrade for Pagaya Technologies Ltd imply an improvement in the company's underlying business [5] Zacks Rank System - The Zacks Rank system uses four factors related to earnings estimates to classify stocks into five groups, with Zacks Rank 1 (Strong Buy) stocks generating an average annual return of +25% since 1988 [7] - The system maintains an equal proportion of 'buy' and 'sell' ratings for over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating and the next 15% receiving a 'Buy' rating [9] Pagaya Technologies Ltd Earnings Outlook - For the fiscal year ending December 2024, Pagaya Technologies Ltd is expected to earn $0 92 per share, a 283 3% increase from the year-ago reported number [8] - Over the past three months, the Zacks Consensus Estimate for the company has increased by 15 3% [8] - The upgrade to Zacks Rank 2 positions Pagaya Technologies Ltd in the top 20% of Zacks-covered stocks in terms of estimate revisions, indicating potential for market-beating returns in the near term [10]