Huntington Bancshares (HBAN) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Huntington Bancshares (HBAN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on changes in earnings estimates, tracking the Zacks Consensus Estimate for EPS from sell-side analysts for the current and following years [2]. - The Zacks rating upgrade reflects an improvement in Huntington Bancshares' earnings outlook, which is expected to positively impact its stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to significant price movements based on their buying or selling actions [5]. Recent Performance of Huntington Bancshares - For the fiscal year ending December 2025, Huntington Bancshares is projected to earn $1.43 per share, representing a 15.3% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for Huntington Bancshares has risen by 3.2%, indicating a positive trend in earnings estimates [9]. Zacks Rank System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Huntington Bancshares to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].