All You Need to Know About The Bank of New York Mellon (BK) Rating Upgrade to Buy

Core Viewpoint - The Bank of New York Mellon Corporation (BK) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which are crucial for stock price movements [1][4][6]. Earnings Estimates and Ratings - The Zacks rating system focuses on changes in earnings estimates, which are tracked through the Zacks Consensus Estimate, reflecting EPS estimates from sell-side analysts for the current and following years [2][9]. - The recent upgrade for The Bank of New York Mellon signifies an improvement in its earnings outlook, likely leading to increased buying pressure and a rise in stock price [4][6]. Impact of Institutional Investors - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [5]. - An increase in earnings estimates typically results in a higher fair value for the stock, prompting institutional investors to buy or sell, which influences stock price [5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [8]. - The upgrade of The Bank of New York Mellon 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][11]. Earnings Estimate Revisions - The Bank of New York Mellon is projected to earn $7.36 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 3.1% over the past three months [9].