Can Magic Software (MGIC) Run Higher on Rising Earnings Estimates?

Core Viewpoint - Magic Software (MGIC) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding Magic Software's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2]. - The current-quarter earnings estimate is $0.29 per share, reflecting a +26.1% change from the previous year, with the Zacks Consensus Estimate increasing by 11.54% over the last 30 days [6]. - For the full year, the earnings estimate stands at $1.09 per share, indicating a +17.2% change from the year-ago figure, with a 10.1% increase in the consensus estimate during the same period [7][8]. Zacks Rank and Performance - Magic Software has achieved a Zacks Rank 2 (Buy), indicating promising estimate revisions that suggest potential outperformance compared to the S&P 500 [9]. - Historically, Zacks 1 (Strong Buy) and 2 (Buy) ranked stocks have significantly outperformed the S&P 500, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][9]. Stock Performance - The stock has gained 6.4% over the past four weeks, driven by solid estimate revisions, suggesting that earnings growth prospects may lead to further stock price increases [10].