What Makes Latham Group (SWIM) a New Buy Stock

Core Viewpoint - Latham Group (SWIM) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - For Latham Group, the recent upgrade reflects an improvement in the company's underlying business, suggesting that investor sentiment may lead to increased stock prices [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Latham Group is projected to earn $0.11 per share, consistent with the previous year's figure, while the Zacks Consensus Estimate has risen by 75% over the past three months [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior potential for market-beating returns [9][10].