Ginkgo Bioworks (DNA) ZACKS·2025-03-05 18:01Core Viewpoint - Ginkgo Bioworks Holdings, Inc. (DNA) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the changing earnings picture of a company, specifically tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - Ginkgo Bioworks is projected to earn -$5.06 per share for the fiscal year ending December 2025, reflecting a 51.2% change from the previous year's reported number [9]. - Over the past three months, the Zacks Consensus Estimate for Ginkgo Bioworks has increased by 17.7%, indicating a positive trend in earnings estimates [9]. Impact of Institutional Investors - Changes in earnings estimates are strongly correlated with stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [5]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, which subsequently affects stock prices [5]. Zacks Rating System - The Zacks Rank stock-rating 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 [8]. - The upgrade of Ginkgo Bioworks to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].