Progyny (PGNY) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Progyny (PGNY) 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][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Progyny's Earnings Outlook - Progyny is expected to earn $1.80 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 8% over the past three months [8]. - The upgrade to Zacks Rank 2 places Progyny in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, maintaining a balanced distribution of ratings across its universe of over 4,000 stocks [9]. - Stocks rated Zacks Rank 1 (Strong Buy) have historically generated an average annual return of +25% since 1988, highlighting the effectiveness of the system [7].