Skillz (SKLZ) Moves to Buy: Rationale Behind the Upgrade

Core Insights - Skillz Inc. (SKLZ) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive shift in earnings estimates which is a significant factor influencing stock prices [1][3] - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly influenced by institutional investors [4][6] Earnings Outlook - The Zacks Consensus Estimate for Skillz indicates an expected earnings of -$3.96 per share for the fiscal year ending December 2025, showing no year-over-year change [8] - Over the past three months, analysts have raised their earnings estimates for Skillz by 4.7% [8] Investment Implications - The upgrade to Zacks Rank 2 places Skillz in the top 20% of Zacks-covered stocks, suggesting a strong potential for near-term price appreciation due to favorable earnings estimate revisions [10] - Rising earnings estimates and the corresponding rating upgrade reflect an improvement in Skillz's underlying business, which could lead to increased investor interest and stock price growth [5][10]