All You Need to Know About MeridianLink (MLNK) Rating Upgrade to Buy

Core Viewpoint - MeridianLink (MLNK) 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 the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [4][6]. MeridianLink's Earnings Outlook - For the fiscal year ending December 2025, MeridianLink is expected to earn $0.36 per share, representing a 56.5% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for MeridianLink has increased by 20%, indicating positive sentiment among analysts [8]. 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 generated an average annual return of +25% since 1988 [7][9]. - The upgrade of MeridianLink to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [10].