Consensus(US:CCSI) ZACKSยท2025-08-26 17:01Core Viewpoint - Consensus Cloud Solutions, Inc. (CCSI) has been upgraded to a Zacks Rank 2 (Buy), indicating an upward trend in earnings estimates which is a significant factor affecting stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade reflects a positive outlook on the earnings potential of Consensus Cloud Solutions, which could positively influence its stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant price movements based on their trading activities [5]. Performance of Zacks Rank System - 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 [8]. - The upgrade of Consensus Cloud Solutions 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 [11]. Earnings Estimate Revisions for Consensus Cloud Solutions - For the fiscal year ending December 2025, Consensus Cloud Solutions is expected to earn $5.52 per share, with no year-over-year change [9]. - Over the past three months, the Zacks Consensus Estimate for the company has increased by 3.7%, reflecting a positive trend in earnings estimates [9].