Fastly (FSLY) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Fastly (FSLY) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - Fastly's rising earnings estimates and the Zacks upgrade suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Zacks Rank System - The Zacks Rank system categorizes 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][9]. - Fastly's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Fastly - For the fiscal year ending December 2025, Fastly is expected to earn -$0.01 per share, unchanged from the previous year, but analysts have raised their estimates by 2.7% over the past three months [8].