Core Viewpoint - Genpact has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates are a powerful indicator of near-term stock performance [4][6]. - Genpact's earnings per share (EPS) for the fiscal year ending December 2025 is projected to be $3.62, with no year-over-year change, but the Zacks Consensus Estimate has increased by 2.8% over the past three months, reflecting a positive trend in earnings estimates [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Genpact's upgrade 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 due to favorable earnings estimate revisions [10].
Genpact (G) Upgraded to Buy: Here's Why