Compass Group (CMPGY) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Compass Group PLC (CMPGY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence 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, suggesting that an upward revision in earnings estimates can lead to increased buying pressure and higher stock prices [4][5]. - For the fiscal year ending September 2025, Compass Group is expected to earn $1.31 per share, which remains unchanged from the previous year, but the Zacks Consensus Estimate has increased by 0.5% over the past three months [8]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7]. - The upgrade of Compass Group 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 due to favorable earnings estimate revisions [10].