Definitive Healthcare (US:DH) ZACKSยท2025-01-21 18:00Core Viewpoint - Definitive Healthcare Corp. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, highlighting the importance of earnings revisions in stock valuation [1][4]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, driven by institutional investors who adjust their valuations based on these estimates [4][6]. Recent Earnings Estimate Revisions - Definitive Healthcare is projected to earn $0.34 per share for the fiscal year ending December 2024, representing a year-over-year increase of 13.3% [8]. - Over the past three months, the Zacks Consensus Estimate for Definitive Healthcare has increased by 71.4%, indicating a significant upward revision in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Definitive Healthcare to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].