Standard Motor Products (SMP) Upgraded to Strong Buy: Here's Why

Core Viewpoint - Standard Motor Products (SMP) has received an upgrade to a Zacks Rank 1 (Strong 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 is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [2][4]. - Rising earnings estimates for SMP indicate an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. 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 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Earnings Estimate Revisions for SMP - For the fiscal year ending December 2025, SMP is expected to earn $3.76 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 4.9% over the past three months [8].