All You Need to Know About Compass (CMP) Rating Upgrade to Buy

Core Viewpoint - Compass Minerals (CMP) 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 a company's changing earnings picture, specifically the consensus of EPS estimates from sell-side analysts [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Compass suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) [7]. - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 1988, indicating the effectiveness of the system [7]. - The upgrade of Compass to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Compass - For the fiscal year ending September 2025, Compass is expected to earn -$0.33 per share, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Compass has increased by 39.2%, reflecting positive sentiment among analysts [8].