S&T Bancorp(US:STBA) ZACKS·2025-12-09 18:01Core Viewpoint - S&T Bancorp (STBA) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, indicating a changing earnings picture [1][2]. - Changes in a company's future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors [4]. Business Improvement Indicators - Rising earnings estimates and the rating upgrade for S&T Bancorp suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. - The Zacks Consensus Estimate for S&T Bancorp is projected at $3.50 per share for the fiscal year ending December 2025, with a 3.8% increase in estimates over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].