PRA Group (PRAA) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - PRA Group (PRAA) 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 Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - For PRA Group, the Zacks Consensus Estimate for the fiscal year ending December 2025 is projected at $1.45 per share, unchanged from the previous year, but has seen a 10.3% increase in estimates over the past three months [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, and their buying or selling actions based on these estimates can lead to significant price movements [4]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of PRA Group to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [10].