Cirrus Logic(US:CRUS) ZACKSยท2025-10-30 17:01Core Viewpoint - Cirrus Logic (CRUS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [4]. Recent Performance and Outlook - For the fiscal year ending March 2026, Cirrus Logic is expected to earn $7.11 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 7.6% over the past three months [8]. - The upgrade to Zacks Rank 1 suggests an improvement in Cirrus Logic's underlying business, which is likely to drive the stock price higher as investors respond to this trend [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 and potential for market-beating returns [9][10].