FirstService (FSV) Upgraded to Strong Buy: Here's Why

Core Viewpoint - FirstService (FSV) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that could lead to increased stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based solely on a company's changing earnings picture, which is a significant factor influencing near-term stock price movements [2][4]. - An increase in earnings estimates typically results in higher fair value for a stock, prompting institutional investors to buy or sell, which subsequently affects stock prices [4]. Company Performance Indicators - FirstService is projected to earn $5.04 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 8.2% [8]. - Over the past three months, the Zacks Consensus Estimate for FirstService has risen by 1.5%, indicating a positive 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 FirstService to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].