NETGEAR(NTGR) ZACKS·2025-02-28 18:05Core Viewpoint - NETGEAR, Inc. (NTGR) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The upgrade in NETGEAR's rating suggests an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [4][9]. - NETGEAR is projected to earn -$0.75 per share for the fiscal year ending December 2025, reflecting a year-over-year change of 17.6% [7]. Analyst Sentiment and Consensus Estimates - Over the past three months, the Zacks Consensus Estimate for NETGEAR has increased by 14.9%, indicating a positive trend in analyst sentiment [7]. - The Zacks Rank system maintains a balanced approach, with only the top 20% of stocks receiving favorable ratings, positioning NETGEAR as a strong candidate for potential market-beating returns [8][9].