Core Viewpoint - Universal Health Services (UHS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, making the Zacks rating system valuable for investors [4][6]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, impacting stock price movements through their large transactions [4]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade suggest an improvement in Universal Health Services' underlying business, which could lead to increased stock prices [5]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Universal Health Services is expected to earn $20.28 per share, with a 5.1% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Universal Health Services in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - Masimo (MASI) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to buying or selling actions that affect stock prices [3]. Masimo's Earnings Outlook - The upgrade for Masimo indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - For the fiscal year ending December 2025, Masimo is projected to earn $5.30 per share, with a 6.4% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating [8]. Conclusion on Masimo's Position - The upgrade to Zacks Rank 1 places Masimo in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

ASICS Corporation Unsponsored ADR (ASCCY) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. ...

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on RCM Technologies, Inc. (RCMT), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like Zacks Rank to make informed investment decisions [1][5]. Group 1: Brokerage Recommendations - RCM Technologies has an average brokerage recommendation (ABR) of 1.67, indicating a consensus between Strong Buy and Buy, with 66.7% of the recommendations being Strong Buy from three brokerage firms [2]. - Despite the positive ABR, it is cautioned that investors should not rely solely on this information for investment decisions, as studies show limited success of brokerage recommendations in predicting stock price increases [5][10]. Group 2: Analyst Bias and Zacks Rank - Brokerage analysts tend to exhibit a strong positive bias in their ratings due to vested interests, with five "Strong Buy" recommendations for every "Strong Sell" recommendation [6][10]. - Zacks Rank, a proprietary stock rating tool, categorizes stocks into five groups based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements, making it a more reliable indicator than ABR [8][11]. Group 3: Current Earnings Estimates and Zacks Rank for RCMT - The Zacks Consensus Estimate for RCM Technologies has remained unchanged at $2.38 over the past month, suggesting steady analyst views on the company's earnings prospects [14]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for RCM Technologies, indicating a cautious approach despite the Buy-equivalent ABR [15].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Twilio (TWLO), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][5][10]. Brokerage Recommendations for Twilio - Twilio has an average brokerage recommendation (ABR) of 1.88, indicating a position between Strong Buy and Buy, based on recommendations from 26 brokerage firms [2]. - Out of the 26 recommendations, 15 are classified as Strong Buy and 2 as Buy, representing 57.7% and 7.7% of total recommendations respectively [2]. Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations for investment decisions may not be advisable, as studies suggest they often fail to guide investors effectively towards stocks with high price appreciation potential [5]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Zacks Rank as an Alternative - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is distinct from ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while ABR may not always be up-to-date [9][12]. Current Earnings Estimates for Twilio - The Zacks Consensus Estimate for Twilio's current year earnings remains unchanged at $4.48, indicating steady analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Twilio holds a Zacks Rank of 3 (Hold), suggesting caution despite the Buy-equivalent ABR [14].

Core Viewpoint - Edgewise Therapeutics, Inc. (EWTX) shows significant upside potential with a mean price target of $39.17, indicating an 182% increase from the current price of $13.89 [1][11]. Price Targets and Estimates - The mean estimate consists of 12 short-term price targets with a standard deviation of $12.96, suggesting variability among analysts [2]. - The lowest estimate is $14.00, indicating a modest 0.8% increase, while the highest estimate is $51.00, reflecting a potential surge of 267.2% [2]. - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement [9]. Earnings Estimates - Analysts have shown increasing optimism about EWTX's earnings prospects, with a strong consensus on higher EPS estimates [11]. - The Zacks Consensus Estimate for the current year has increased by 1% over the past month, with one estimate rising and no negative revisions [12]. - EWTX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13]. Analyst Behavior and Price Target Reliability - Analysts often set overly optimistic price targets due to business incentives, which can lead to inflated estimates [8]. - While price targets can provide insights, they should be approached with skepticism as they may not accurately predict stock price movements [10].

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on RTX, and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][5][10]. Group 1: Brokerage Recommendations for RTX - RTX has an average brokerage recommendation (ABR) of 1.77, indicating a consensus between Strong Buy and Buy, based on 22 brokerage firms [2]. - Out of the 22 recommendations, 13 are Strong Buy and 1 is Buy, which accounts for 59.1% and 4.6% of all recommendations respectively [2]. Group 2: Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the highest price increase potential [5]. - Analysts often exhibit a strong positive bias due to the vested interests of brokerage firms, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. Group 3: Zacks Rank as an Alternative Tool - The Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is updated more frequently than the ABR, making it a timely indicator of future price movements [12]. Group 4: Current Earnings Estimates for RTX - The Zacks Consensus Estimate for RTX remains unchanged at $5.93 for the current year, suggesting steady analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, RTX holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].

Group 1 - Riot Platforms, Inc. has an average brokerage recommendation (ABR) of 1.47, indicating a consensus between Strong Buy and Buy based on 17 brokerage firms' recommendations [2] - Of the 17 recommendations, 12 are Strong Buy and 2 are Buy, accounting for 70.6% and 11.8% of all recommendations respectively [2] - Despite the positive ABR, caution is advised as studies show limited success of brokerage recommendations in predicting stock price increases [5][10] Group 2 - The Zacks Consensus Estimate for Riot Platforms, Inc. remains unchanged at -$0.67, suggesting steady analyst views on the company's earnings prospects [13] - The unchanged consensus estimate has led to a Zacks Rank of 3 (Hold) for Riot Platforms, Inc., indicating a cautious outlook despite the Buy-equivalent ABR [14] - The Zacks Rank is driven by earnings estimate revisions, which are more timely and may provide better insights into future stock price movements compared to the ABR [11][12]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on AT&T (T), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for making investment decisions [1][5][10]. Brokerage Recommendations for AT&T - AT&T has an average brokerage recommendation (ABR) of 1.82, indicating a consensus between Strong Buy and Buy, based on recommendations from 30 brokerage firms [2]. - Out of the 30 recommendations, 17 are classified as Strong Buy and 3 as Buy, which represent 56.7% and 10% of the total recommendations respectively [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the highest price increase potential [5]. - The vested interests of brokerage firms often lead to a positive bias in their analysts' ratings, with a ratio of five Strong Buy recommendations for every Strong Sell [6][10]. Comparison with Zacks Rank - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of a stock's near-term price performance compared to ABR [8][11]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, while ABR may not always be current [12]. Current Earnings Estimates for AT&T - The Zacks Consensus Estimate for AT&T's earnings for the current year remains unchanged at $2.05, suggesting stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, AT&T holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].

Core Viewpoint - Mission Produce, Inc. (AVO) shows potential for significant upside, with a mean price target of $17.33 indicating a 34.9% increase from the current trading price of $12.85 [1] Price Targets and Analyst Estimates - The mean estimate consists of three short-term price targets with a standard deviation of $0.58, suggesting a consensus among analysts [2] - The lowest estimate of $17.00 indicates a 32.3% increase, while the highest target of $18.00 suggests a 40.1% increase from the current price [2] - Analysts' price targets can be misleading, as they often set overly optimistic targets influenced by business relationships [7][8] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism regarding AVO's earnings, with a strong agreement in revising EPS estimates higher, which correlates with potential stock price movements [11] - Over the last 30 days, one estimate has increased, leading to a 15.7% rise in the Zacks Consensus Estimate for the current year [12] - AVO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Conclusion on Price Movement - While the consensus price target may not be a reliable indicator of the extent of AVO's potential gains, it does provide a useful guide for the direction of price movement [14]