Skyward Specialty Insurance (SKWD) ZACKS·2025-02-07 18:01Core Viewpoint - Skyward Specialty Insurance (SKWD) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The recent upgrade reflects an improvement in Skyward's earnings outlook, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Revisions - There is a strong correlation between changes in earnings estimates and near-term stock price movements, with institutional investors using these estimates to determine fair value [5][7]. - For Skyward, the rising earnings estimates indicate an improvement in the company's underlying business, which should positively influence its stock price [6]. Specific Earnings Data - For the fiscal year ending December 2024, Skyward is projected to earn $3.07 per share, representing a 45.5% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for Skyward has increased by 0.7%, reflecting analysts' growing confidence in the company's performance [9]. 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 [8]. - Skyward's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10][11].