What Makes SelectQuote (SLQT) a New Buy Stock

Core Viewpoint - SelectQuote (SLQT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. SelectQuote's Earnings Outlook - The recent upgrade for SelectQuote reflects an improvement in its underlying business, driven by rising earnings estimates, which is expected to create buying pressure and increase its stock price [5][10]. - Over the past three months, the Zacks Consensus Estimate for SelectQuote has increased by 33.3%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, positioning SelectQuote favorably for potential market-beating returns [9][10].