Bank of Hawaii(US:BOH) ZACKS·2025-09-23 17:01Core Viewpoint - Bank of Hawaii (BOH) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with 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]. Recent Performance and Outlook - Bank of Hawaii is expected to earn $4.36 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 1.1% over the past three months [8]. - The upgrade to Zacks Rank 2 places Bank of Hawaii in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [10]. Zacks Rating 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 "buy" and "sell" ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, reflecting superior earnings estimate revisions [9].