All You Need to Know About Fiverr (FVRR) Rating Upgrade to Buy

Core Viewpoint - Fiverr International (FVRR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Fiverr reflects an improved earnings outlook, which is expected to positively impact its stock price [3][5]. Impact of Earnings Estimate Revisions - There is a strong correlation between changes in earnings estimates and near-term stock price movements, making the Zacks rating system valuable for investors [4][6]. - Fiverr's rising earnings estimates, with a 9.2% increase in the Zacks Consensus Estimate over the past three months, indicate an improvement in the company's underlying business [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have generated an average annual return of +25% since 1988 [7]. - Fiverr's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].