Core Viewpoint - Esquire Financial Holdings, Inc. (ESQ) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Stock Price Impact - The Zacks rating system focuses on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, making the Zacks rating system valuable for investors [3][5]. - For Esquire Financial, the upgrade reflects an improvement in the company's underlying business, which is expected to drive the stock price higher [6]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Esquire Financial is projected to earn $5.56 per share, representing an 8.2% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for Esquire Financial has increased by 0.7%, indicating a positive trend in earnings estimates [9]. 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 [8]. - The upgrade to Zacks Rank 2 places Esquire Financial in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].
Esquire Financial (ESQ) Upgraded to Buy: Here's Why