What Makes Sequans (SQNS) a New Buy Stock

Core Viewpoint - Sequans (SQNS) has received an upgrade 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 Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance Indicators - Sequans is projected to earn $2.26 per share for the fiscal year ending December 2024, marking a substantial year-over-year increase of 263.8% [8]. - Over the past three months, the Zacks Consensus Estimate for Sequans has risen by 1.1%, indicating a positive trend in earnings expectations [8]. Zacks Rating System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Sequans in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].