Stantec (STN) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Stantec (STN) 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 tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, and changes in these estimates are strongly correlated with stock price movements [1][4]. - For the fiscal year ending December 2025, Stantec is expected to earn $3.58 per share, representing a 10.8% increase from the previous year [8]. Analyst Sentiment and Market Impact - Analysts have been consistently raising their earnings estimates for Stantec, with a 3.3% increase in the Zacks Consensus Estimate over the past three months [8]. - The upgrade to Zacks Rank 2 places Stantec in the top 20% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term due to improved earnings outlook [10]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks are recognized for superior earnings estimate revisions [9][10].