Core Viewpoint - American Coastal Insurance (ACIC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which aggregates EPS estimates from sell-side analysts for the current and following years [2]. - The recent upgrade reflects a 48.1% increase in the Zacks Consensus Estimate for American Coastal over the past three months, with expected earnings of $2.00 per share for the fiscal year ending December 2025, showing no year-over-year change [9]. Impact on Stock Prices - Changes in earnings estimates are strongly correlated with near-term stock price movements, primarily due to institutional investors who adjust their valuations based on these estimates [5]. - The upgrade to Zacks Rank 2 positions American Coastal in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% receive a "Buy" rating [10].
American Coastal (ACIC) Upgraded to Buy: Here's What You Should Know