UniFirst (UNF) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - UniFirst (UNF) 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][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely 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]. Company Performance and Outlook - The upgrade for UniFirst indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - For the fiscal year ending August 2025, UniFirst is projected to earn $7.94 per share, reflecting a -3.8% change from the previous year, but the Zacks Consensus Estimate has increased by 3.5% over the past three months [7]. Zacks Rank System - 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 averaged a +25% annual return since 1988 [6]. - The upgrade of UniFirst to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].