Commerce (CBSH) Upgraded to Buy: Here's Why

Core Viewpoint - Commerce Bancshares (CBSH) has been upgraded to a Zacks Rank 2 (Buy), reflecting an upward trend in earnings estimates, which significantly impacts stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][4]. - Rising earnings estimates for Commerce indicate an improvement in the company's underlying business, likely leading to increased stock prices [5]. 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 averaged a +25% annual return since 1988 [7]. - The upgrade of Commerce to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Commerce - For the fiscal year ending December 2025, Commerce is expected to earn $4.29 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 5.2% over the past three months [8].