All You Need to Know About Sodexo (SDXAY) Rating Upgrade to Buy

Core Viewpoint - Sodexo S.A. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - For Sodexo, the recent increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to a rise in stock price [5]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade of Sodexo to a 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]. Earnings Estimate Revisions for Sodexo - For the fiscal year ending August 2025, Sodexo is expected to earn $1.26 per share, which remains unchanged from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Sodexo has increased by 7.7%, reflecting analysts' growing confidence in the company's performance [8].