All You Need to Know About DoubleVerify (DV) Rating Upgrade to Buy

Core Viewpoint - DoubleVerify Holdings (DV) 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][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The recent upgrade for DoubleVerify indicates a positive outlook for its earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - Analysts have raised their earnings estimates for DoubleVerify, with the Zacks Consensus Estimate increasing by 13.1% over the past three months [8]. Earnings Estimate Details - For the fiscal year ending December 2024, DoubleVerify is expected to earn $0.36 per share, reflecting a year-over-year decline of 12.2% [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - The upgrade of DoubleVerify to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].