Nice (NICE) Upgraded to Buy: Here's Why

Core Viewpoint - Nice (NICE) 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][2] 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 [3] - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to stock price movements based on their buying or selling activities [3] Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade for Nice indicate an improvement in the company's underlying business, suggesting that investors may push the stock price higher [4] Importance of Earnings Estimate Revisions - Empirical research shows a strong correlation between earnings estimate revisions and near-term stock movements, making tracking these revisions beneficial for investment decisions [5] - The Zacks Rank stock-rating system effectively utilizes earnings estimate revisions to classify stocks into five groups, with a proven track record of performance [6] Specifics on Nice's Earnings Estimates - Nice is expected to earn $12.37 per share for the fiscal year ending December 2025, with no year-over-year change, while the Zacks Consensus Estimate has increased by 1.7% over the past three months [7] Zacks Rating System Overview - The Zacks rating system maintains a balanced proportion of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 20% receiving favorable ratings [8][9] - The upgrade of Nice to a 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 [9]