Gitlab (GTLB) Upgraded to Buy: What Does It Mean for the Stock?

The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the nearterm price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stoc ...