Lumen(US:LUMN) ZACKSยท2025-04-23 17:00Core Viewpoint - Lumen (LUMN) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - Changes in a company's future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, impacting stock price through their large transactions [3]. Business Improvement Indicators - The rising earnings estimates and the Zacks Rank upgrade for Lumen suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [4]. Importance of Earnings Estimate Revisions - Empirical research supports the correlation between earnings estimate revisions and stock movements, making tracking these revisions crucial for investment decisions [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, providing a reliable framework for investors [6]. Specific Earnings Estimates for Lumen - Lumen is projected to earn -$0.87 per share for the fiscal year ending December 2025, reflecting a year-over-year change of -314.3% [7]. - Over the past three months, the Zacks Consensus Estimate for Lumen has increased by 7.8%, indicating a positive trend in earnings expectations [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 20% receiving favorable ratings [8][9]. - Lumen's upgrade 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 [9].