All You Need to Know About Alithya (ALYAF) Rating Upgrade to Buy

Core Viewpoint - Alithya Group (ALYAF) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4]. - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to significant stock price movements based on their buying or selling actions [4]. Alithya's Earnings Outlook - The recent upgrade for Alithya signifies an improvement in the company's underlying business, which is expected to drive the stock price higher as investors respond positively to this trend [5]. - Alithya is projected to earn $0.13 per share for the fiscal year ending March 2026, with no year-over-year change, but the Zacks Consensus Estimate has increased by 81.5% over the past three months [8]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Alithya's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].