Sallie Mae (SLM) Upgraded to Buy: Here's Why

Core Viewpoint - Sallie Mae (SLM) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks rating upgrade reflects a positive outlook on Sallie Mae's earnings, which could positively affect its stock price [2]. - The company is expected to earn $2.72 per share for the fiscal year ending December 2024, indicating a year-over-year increase of 12.9% [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for Sallie Mae has increased by 2.2%, showing a trend of rising earnings estimates [5]. - The correlation between earnings estimate revisions and near-term stock movements is strong, suggesting that tracking these revisions can be beneficial for investment decisions [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [4]. - Sallie Mae's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for price movement in the near term [7].