Guess (GES) Upgraded to Strong Buy: Here's Why

Core Viewpoint - Guess (GES) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook for the company's earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are crucial for predicting near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Business Improvement Indicators - The upgrade reflects an improvement in Guess's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - The Zacks Consensus Estimate for Guess indicates expected earnings of $1.69 per share for the fiscal year ending January 2026, with a 6% increase in estimates over the past three months [8]. Zacks Rank 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 and potential for market-beating returns [9][10].