Intercorp Financial Services(US:IFS) ZACKSยท2025-06-26 17:01Core Viewpoint - Intercorp Financial Services Inc. (IFS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Stock Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating system is beneficial for investors as it focuses on objective earnings estimate revisions rather than subjective analyst ratings [3][10]. Impact of Earnings Estimates on Stock Prices - Changes in future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [5][7]. - Rising earnings estimates for Intercorp Financial Services suggest an improvement in the company's underlying business, which could lead to higher stock prices [6][11]. Performance of Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Intercorp Financial Services to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns [10][11]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, Intercorp Financial Services is expected to earn $4.34 per share, with no year-over-year change, but the Zacks Consensus Estimate has increased by 2.6% over the past three months [9].