What Makes CTS (CTS) a New Buy Stock

Core Viewpoint - CTS has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on an upward trend in earnings estimates, which significantly influences stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are strongly correlated with near-term stock price movements [2][3]. - Institutional investors rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade for CTS suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [4]. Importance of Earnings Estimate Revisions - Empirical research supports the correlation between earnings estimate revisions and stock movements, making it beneficial for investors to track these revisions for investment decisions [5]. - The Zacks Rank system utilizes four factors related to earnings estimates to classify stocks, with a strong historical performance of Zacks Rank 1 stocks averaging a +25% annual return since 1988 [6]. Current Earnings Estimates for CTS - CTS is projected to earn $2.41 per share for the fiscal year ending December 2026, with no year-over-year change, while the Zacks Consensus Estimate has increased by 0.4% over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across over 4,000 stocks, with only the top 5% receiving a "Strong Buy" rating [8]. - CTS'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 [9].