All You Need to Know About TTM (TTMI) Rating Upgrade to Strong Buy

Core Viewpoint - TTM Technologies (TTMI) 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][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the changing earnings picture that impacts stock prices [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock movements, with institutional investors using these estimates to determine fair value [3]. Business Improvement Indicators - The upgrade in TTM's rating signifies an improvement in the company's underlying business, which is expected to drive the stock price higher as investors recognize this trend [4]. Importance of Earnings Estimate Revisions - Tracking earnings estimate revisions is crucial for investment decisions, and the Zacks Rank system effectively utilizes this data to classify stocks [5][6]. - The Zacks Rank system has a proven track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [6]. Specifics on TTM's Earnings Estimates - For the fiscal year ending December 2025, TTM is projected to earn $2.44 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 5.6% over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 5% receiving a "Strong Buy" rating [8][9]. - TTM's upgrade to Zacks Rank 1 places it in the top 5% of stocks based on estimate revisions, suggesting potential for higher stock movement in the near term [9].