Alight (ALIT) Upgraded to Buy: Here's Why

Core Viewpoint - Alight, Inc. (ALIT) 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 correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates can lead to significant price changes [4][6]. - For Alight, the recent increase in earnings estimates reflects an improvement in the company's underlying business, which is expected to positively influence its stock price [5]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Alight 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 [10]. Earnings Estimate Revisions for Alight - For the fiscal year ending December 2025, Alight is expected to earn $0.61 per share, which remains unchanged from the previous year, but the Zacks Consensus Estimate has increased by 1% over the past three months [8].