All You Need to Know About Cactus (WHD) Rating Upgrade to Strong Buy

Core Viewpoint - Cactus, Inc. (WHD) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - Cactus is expected to earn $2.50 per share for the fiscal year ending December 2025, with a 0% year-over-year change, but the Zacks Consensus Estimate has increased by 0.8% over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions, which positions Cactus favorably for potential market-beating returns [10].