Core Insights - Riskified (RSKD) has been upgraded to a Zacks Rank 2 (Buy), indicating an upward trend in earnings estimates which is a significant factor influencing stock prices [1][3] - The Zacks rating system is based on changes in earnings estimates, providing a more objective measure compared to subjective Wall Street analyst ratings [2][9] Earnings Estimates and Stock Performance - The Zacks rating upgrade for Riskified reflects a positive outlook on its earnings, which is expected to positively impact its stock price [3][5] - There is a strong correlation between changes in earnings estimates and near-term stock price movements, with institutional investors using these estimates to determine fair value [4][6] Earnings Estimate Revisions for Riskified - For the fiscal year ending December 2025, Riskified is expected to earn $0.19 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 13.8% over the past three months [8][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] - Riskified's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]
What Makes Riskified (RSKD) a New Buy Stock