All You Need to Know About Southern First (SFST) Rating Upgrade to Strong Buy

Core Viewpoint - Southern First (SFST) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in a company's earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4][6]. Recent Developments for Southern First - For the fiscal year ending December 2025, Southern First is expected to earn $3.05 per share, unchanged from the previous year, but analysts have raised their estimates by 14% over the past three months [8]. - The upgrade to Zacks Rank 1 indicates an improvement in Southern First's underlying business, which is likely to drive the stock price higher as investors respond positively to this trend [5][10]. Zacks Rank System Overview - 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 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].