Agora(US:API) Zacks Investment Researchยท2024-02-29 18:01Core Viewpoint - Agora, Inc. Sponsored ADR (API) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks Consensus Estimate for Agora, Inc. indicates an expected earnings per share (EPS) of -$0.23 for the fiscal year ending December 2024, reflecting a year-over-year change of 73.9% [5]. - Over the past three months, the consensus estimate for Agora has increased by 28.6%, suggesting a positive trend in earnings expectations [5]. Impact of Earnings Estimates on Stock Prices - Changes in earnings estimates are strongly correlated with near-term stock price movements, primarily due to institutional investors who adjust their valuations based on these estimates [3]. - The upgrade in Agora's earnings estimates and the corresponding Zacks rating upgrade signal an improvement in the company's underlying business, which is likely to drive the stock price higher [3][7]. Zacks Rating System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [4]. - Agora's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [6][7].