First Foundation (FFWM) ZACKS·2025-01-21 18:00Core Viewpoint - First Foundation (FFWM) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to stock price fluctuations based on their buying or selling actions [3]. Company Performance and Outlook - The upgrade for First Foundation reflects an improvement in its underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - For the fiscal year ending December 2024, First Foundation is expected to earn $0.13 per share, which represents a decrease of 58.1% from the previous year [7]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade to Zacks Rank 2 places First Foundation in the top 20% of Zacks-covered stocks, indicating a strong potential for near-term price appreciation [9].