All You Need to Know About Cardlytics (CDLX) Rating Upgrade to Buy

Core Viewpoint - Cardlytics (CDLX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive shift in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in a company's earnings potential, which is strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Cardlytics Earnings Outlook - The recent upgrade for Cardlytics suggests an improvement in its underlying business, which is expected to drive the stock price higher as investors recognize this trend [5][10]. - For the fiscal year ending December 2025, Cardlytics is projected to earn -$0.07 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 63.2% over the past three months [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7][9]. - Cardlytics' 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].