Cardlytics(US:CDLX) ZACKS·2026-01-05 18:00Core Viewpoint - Cardlytics (CDLX) has received an upgrade 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 Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Investor Sentiment - The upgrade for Cardlytics indicates an improvement in the company's underlying business, which is expected to drive the stock price higher as investors recognize this positive trend [5][10]. - Over the past three months, the Zacks Consensus Estimate for Cardlytics has increased by 1000%, reflecting a significant positive revision in earnings estimates [8]. Zacks Rank 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]. - Cardlytics' 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 [10].