All You Need to Know About Aflac (AFL) Rating Upgrade to Buy

Core Viewpoint - Aflac (AFL) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, leading to significant buying or selling actions that affect stock prices [4]. Aflac's Earnings Outlook - Aflac's rising earnings estimates and the Zacks rating upgrade suggest an improvement in the company's underlying business, which is expected to drive the stock price higher [5][10]. - The Zacks Consensus Estimate for Aflac indicates an expected earnings per share of $6.83 for the fiscal year ending December 2025, with a 1.4% increase in estimates over the past three months [8]. Zacks Rank System - The Zacks Rank 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 [7]. - Aflac's upgrade to 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].