United Bankshares (UBSI) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - United Bankshares (UBSI) 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 as a key determinant of stock ratings, with a strong correlation between earnings estimate revisions and near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to assess a company's fair value, leading to stock price movements based on their buying or selling actions [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, United Bankshares is expected to earn $3.14 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 5.9% over the past three months [8]. - The upgrade to Zacks Rank 2 places United Bankshares in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rank 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 system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% receive a "Buy" rating [9].