Core Viewpoint - Compass, Inc. has been upgraded to a Zacks Rank 1 (Strong 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 is based on changes in earnings estimates, which are closely correlated with stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Recent Developments for Compass - Compass is expected to earn -$0.33 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 52.2% [8]. - Over the past three months, the Zacks Consensus Estimate for Compass has increased by 251%, indicating a strong upward trend in earnings estimates [8]. Zacks Rank System - 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 Compass to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].
All You Need to Know About Compass (COMP) Rating Upgrade to Strong Buy