All You Need to Know About Freshpet (FRPT) Rating Upgrade to Buy

Core Viewpoint - Freshpet (FRPT) has been upgraded 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 Performance - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Freshpet's Earnings Outlook - For the fiscal year ending December 2024, Freshpet is expected to earn $0.90 per share, reflecting a 228.6% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Freshpet has risen by 3.5%, 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 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Freshpet's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].