United Bankshares (UBSI) Upgraded to Buy: Here's Why

Core Viewpoint - United Bankshares (UBSI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by rising 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 near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Recent Performance of United Bankshares - For the fiscal year ending December 2025, United Bankshares is expected to earn $3.15 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 4.6% over the past three months [8]. - The upgrade reflects an improvement in the company's underlying business, which is expected to drive stock appreciation [5]. Zacks Rank System Overview - 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]. - The upgrade to Zacks Rank 2 places United Bankshares in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].