AST SpaceMobile (ASTS) Upgraded to Buy: Here's Why

Core Viewpoint - AST SpaceMobile, Inc. (ASTS) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for AST SpaceMobile reflects an improved earnings outlook, which is likely to positively impact its stock price [4][6]. - Rising earnings estimates and the subsequent rating upgrade suggest an enhancement in AST SpaceMobile's underlying business, which could lead to higher stock prices [6]. Impact of Earnings Estimate Revisions - Empirical research indicates a strong correlation between earnings estimate revisions and near-term stock movements, making it beneficial for investors to track these revisions [7]. - The Zacks Rank stock-rating system effectively utilizes earnings estimate revisions to classify stocks, with a proven track record of performance [8]. Current Earnings Estimates for AST SpaceMobile - AST SpaceMobile is projected to earn -$1.81 per share for the fiscal year ending December 2024, reflecting a year-over-year decline of 69.2% [9]. - Over the past three months, the Zacks Consensus Estimate for AST SpaceMobile has increased by 2.2%, indicating a positive trend in earnings expectations [9]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [10]. - The upgrade of AST SpaceMobile to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks based on estimate revisions, suggesting potential for market-beating returns in the near term [11].