BIT Mining Limited (BTCM) Moves to Buy: Rationale Behind the Upgrade

Core Viewpoint - BIT Mining Limited has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - For the fiscal year ending December 2025, BIT Mining Limited is expected to earn -$0.50 per share, representing a 5.7% change from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for BIT Mining Limited has increased by 50%, indicating a positive trend in earnings estimates [9]. Impact of Institutional Investors - Changes in a company's future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [5]. - Institutional investors typically buy or sell large amounts of shares based on changes in earnings estimates, leading to significant price movements for the stock [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) to Zacks Rank 5 (Strong Sell) [8]. - The system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. - The upgrade of BIT Mining Limited to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].