Core Viewpoint - Legacy Education Inc. (LGCY) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4][6]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Legacy Education Inc. projects earnings of $0.59 per share for the fiscal year ending June 2025, reflecting an 11.3% year-over-year increase [9]. - Over the past three months, the Zacks Consensus Estimate for the company has risen by 2.6%, indicating a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system evaluates stocks based on earnings estimate revisions, categorizing them into five groups from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) [8]. - The system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988, highlighting the effectiveness of earnings estimate revisions in predicting stock performance [8]. Market Implications - The upgrade to Zacks Rank 2 positions Legacy Education Inc. in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term due to favorable earnings estimate revisions [11]. - Rising earnings estimates are correlated with stock price movements, as institutional investors often adjust their valuations based on these estimates, leading to buying or selling actions that affect stock prices [5][6].
Legacy Education Inc. (LGCY) Upgraded to Buy: Here's What You Should Know