Bank of NT Butterfield & Son (NTB) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - Bank of NT Butterfield & Son (NTB) 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][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 the earnings outlook for Bank of NT Butterfield & Son, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimate 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 Bank of NT Butterfield & Son, the rising earnings estimates and the rating upgrade suggest an improvement in the company's underlying business, likely resulting in higher stock prices [6]. Performance of 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 [8]. - The upgrade places Bank of NT Butterfield & Son in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11]. Earnings Estimate Details - For the fiscal year ending December 2025, Bank of NT Butterfield & Son is expected to earn $4.40 per share, reflecting a year-over-year change of -7.8%. However, the Zacks Consensus Estimate has increased by 12.8% over the past three months [9].