Honest (HNST) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - Honest (HNST) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook for its stock based on rising earnings estimates [1][3]. Earnings Estimates and Stock Impact - The upgrade reflects an upward trend in earnings estimates, which significantly influences stock prices [1][4]. - The Zacks rating system is based on changes in earnings estimates, which are tracked through a consensus measure known as the Zacks Consensus Estimate [1][2]. Institutional Investor Influence - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [4][5]. Earnings Estimate Revisions for Honest - Honest is projected to earn -$0.07 per share for the fiscal year ending December 2024, representing a year-over-year change of 82.9% [8]. - Over the past three months, the Zacks Consensus Estimate for Honest has increased by 600%, indicating a significant upward revision in earnings expectations [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Honest to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [10].