Why VAREX IMAGING (VREX) Might be Well Poised for a Surge

Core Viewpoint - VAREX IMAGING (VREX) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][2]. Earnings Estimate Revisions - Analysts have shown growing optimism regarding VAREX IMAGING's earnings prospects, leading to a rising trend in estimate revisions, which is expected to positively impact the stock price [2]. - The current-quarter earnings estimate is projected at $0.14 per share, reflecting a year-over-year decline of 26.3%. However, the Zacks Consensus Estimate has increased by 75% over the last 30 days, with one estimate rising and no negative revisions [5]. - For the full year, the earnings estimate stands at $0.55 per share, with a year-over-year change of 0.0%. The consensus estimate has increased by 30.95% due to one upward revision and no negative changes [6][7]. Zacks Rank and Performance - VAREX IMAGING has achieved a Zacks Rank of 2 (Buy), indicating favorable estimate revisions that suggest strong potential for outperformance compared to the S&P 500 [8]. - Historically, stocks with a Zacks Rank of 1 (Strong Buy) and 2 (Buy) have significantly outperformed the S&P 500, with Zacks 1 stocks generating an average annual return of +25% since 2008 [3][8]. Recent Stock Performance - VAREX IMAGING shares have increased by 23.2% over the past four weeks, reflecting investor confidence in the company's earnings growth prospects [9].