American Assets Trust (AAT) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - American Assets Trust (AAT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to significant price movements based on their buying or selling actions [4]. Company Performance and Outlook - The upgrade for American Assets Trust reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [5]. - The Zacks Consensus Estimate for American Assets Trust is projected at $2.01 per share for the fiscal year ending December 2025, with a 1% increase in estimates over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places American Assets Trust in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].