What Makes Regal Rexnord (RRX) a New Buy Stock

Core Viewpoint - Regal Rexnord (RRX) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Regal Rexnord's rising earnings estimates indicate an improvement in the company's underlying business, likely leading to increased stock prices as investors respond positively [5][10]. Zacks Rating 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 [7][9]. - Regal Rexnord's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Regal Rexnord - For the fiscal year ending December 2025, Regal Rexnord is expected to earn $9.94 per share, with a 0.7% increase in the Zacks Consensus Estimate over the past three months [8].