Agree Realty(US:ADC) ZACKSยท2025-09-10 17:01Core Viewpoint - Agree Realty (ADC) 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 Impact - The Zacks rating system focuses on changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company-Specific Insights - For Agree Realty, the upgrade reflects an improvement in the company's underlying business, suggesting that investor sentiment regarding this trend should drive the stock price higher [5]. - The Zacks Consensus Estimate for Agree Realty indicates expected earnings of $4.30 per share for the fiscal year ending December 2025, with a 0.3% increase in estimates over the past three months [8]. Zacks Rating System Overview - 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 Agree Realty to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].