Core Viewpoint - Aflac (AFL) 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][2] Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3] - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price movements when they buy or sell large amounts of shares [3] Aflac's Earnings Outlook - The upgrade reflects an improvement in Aflac's underlying business, with rising earnings estimates expected to drive the stock price higher [4] - For the fiscal year ending December 2025, Aflac is projected to earn $6.86 per share, with a 1.9% increase in the Zacks Consensus Estimate over the past three months [7] 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 averaged a +25% annual return since 1988 [6] - Aflac's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9]
Aflac (AFL) Upgraded to Buy: Here's What You Should Know