TriCo (TCBK) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - TriCo (TCBK) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. TriCo's Earnings Outlook - For the fiscal year ending December 2025, TriCo is expected to earn $3.40 per share, which remains unchanged from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for TriCo has increased by 1.8%, reflecting a positive trend in earnings estimates [7]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [6]. - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across over 4,000 stocks, ensuring that only the top 20% receive a "Strong Buy" or "Buy" rating [8][9]. Conclusion - The upgrade of TriCo to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term due to favorable earnings estimate revisions [9].