iRhythm Technologies (IRTC) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - iRhythm Technologies (IRTC) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [1][2]. - Changes in future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for iRhythm Technologies indicate an improvement in the company's underlying business, suggesting that investors may push the stock higher [5][8]. Zacks Rank System - The Zacks Rank stock-rating 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][9]. - The upgrade of iRhythm Technologies to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for near-term price movement [10]. Earnings Estimate Revisions for iRhythm Technologies - iRhythm Technologies is expected to earn -$1.75 per share for the fiscal year ending December 2025, reflecting a year-over-year change of 43.2% [8]. - Over the past three months, the Zacks Consensus Estimate for iRhythm Technologies has increased by 16% [8].