Popular(US:BPOP) ZACKSยท2025-05-19 17:01Core Viewpoint - Popular (BPOP) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which are a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [2][3]. - Institutional investors utilize 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 Popular signifies an improvement in the company's underlying business, which is expected to drive the stock price higher as investors recognize this trend [4]. - For the fiscal year ending December 2025, Popular is projected to earn $10.54 per share, reflecting a 17.1% increase from the previous year, with a 4.8% rise in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [8][9].