Core Viewpoint - Popular (BPOP) has received an upgrade 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 Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Popular, the recent increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to upward pressure on its stock price [5][8]. Zacks Rating System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Popular to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2026, Popular is expected to earn $14.31 per share, unchanged from the previous year, but analysts have raised their estimates by 4.9% over the past three months [8].
What Makes Popular (BPOP) a New Strong Buy Stock