California Resources (US:CRC) ZACKS·2025-10-16 17:01Core Viewpoint - California Resources Corporation (CRC) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on changes in earnings estimates, tracking EPS estimates from sell-side analysts through a consensus measure known as the Zacks Consensus Estimate [2]. - The recent upgrade reflects a 14.2% increase in the Zacks Consensus Estimate for California Resources over the past three months, with expected earnings of $4.20 per share for the fiscal year ending December 2025, showing no year-over-year change [9]. Impact on Stock Prices - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly due to the actions of institutional investors [5]. - Rising earnings estimates and the corresponding rating upgrade suggest an improvement in California Resources' underlying business, which could lead to increased stock prices as investors respond positively [6]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of California Resources to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11].