Personalis(US:PSNL) ZACKSยท2025-08-08 17:01Core Viewpoint - Personalis (PSNL) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - 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 a company's shares, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - The upgrade in rating for Personalis suggests an improvement in the company's underlying business, which should encourage investors to drive the stock price higher [4]. - The Zacks Consensus Estimate for Personalis has increased by 2.5% over the past three months, with expected earnings of -$0.98 per share for the fiscal year ending December 2025, indicating no year-over-year change [7]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [6]. - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [8][9].