Earnings Estimate Revisions

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SiteOne Landscape (SITE) Upgraded to Strong Buy: What Does It Mean for the Stock?
ZACKS· 2025-08-26 17:01
Core Viewpoint - SiteOne Landscape (SITE) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which are a significant factor influencing stock prices [1][4][6]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for SiteOne Landscape for the fiscal year ending December 2025 is projected at $3.47 per share, unchanged from the previous year [9]. - Over the past three months, analysts have increased their earnings estimates for SiteOne Landscape by 10.8% [9]. Zacks Rating System - The Zacks rating system evaluates stocks based on changes in earnings estimates, categorizing them into five groups from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) [8][10]. - Stocks rated Zacks Rank 1 have historically generated an average annual return of +25% since 1988, indicating a strong performance potential [8]. Market Implications - The upgrade to Zacks Rank 1 places SiteOne Landscape in the top 5% of Zacks-covered stocks, suggesting a favorable position for potential market-beating returns in the near term [11]. - The correlation between earnings estimate revisions and stock price movements highlights the importance of tracking these revisions for investment decisions [7][5].
Farmers National (FMNB) Upgraded to Strong Buy: Here's What You Should Know
ZACKS· 2025-08-26 17:01
Core Viewpoint - Farmers National Banc (FMNB) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors play a role in this relationship, as they adjust their valuations based on earnings estimates, leading to stock price fluctuations [3]. Business Improvement Indicators - The upgrade in earnings estimates for Farmers National suggests an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [4]. Importance of Earnings Estimate Revisions - Research indicates a strong correlation between earnings estimate revisions and stock movements, emphasizing the importance of tracking these revisions for investment decisions [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, providing a structured approach to investment [6]. Specific Earnings Estimates for Farmers National - Farmers National is projected to earn $1.59 per share for the fiscal year ending December 2025, with no year-over-year change expected [7]. - Over the past three months, the Zacks Consensus Estimate for Farmers National has increased by 6%, reflecting analysts' positive sentiment [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of ratings, with only the top 5% of stocks receiving a "Strong Buy" rating, indicating superior earnings estimate revisions [8][9]. - The upgrade of Farmers National to a Zacks Rank 1 places it among the top 5% of stocks covered by Zacks, suggesting potential for market-beating returns in the near term [9].
United Community Banks (UCB) Upgraded to Buy: Here's What You Should Know
ZACKS· 2025-08-26 17:01
Core Viewpoint - United Community Banks (UCB) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly influenced by institutional investors [4][6]. - For the fiscal year ending December 2025, UCB is expected to earn $2.64 per share, with a 4.3% increase in the Zacks Consensus Estimate over the past three months [8]. Investment Implications - The upgrade to Zacks Rank 2 suggests an improvement in UCB's underlying business, which could lead to higher stock prices as investors respond positively to this trend [5][10]. - The Zacks Rank system maintains a balanced approach, ensuring that only the top 20% of stocks based on earnings estimate revisions receive favorable ratings, positioning UCB as a strong candidate for market-beating returns [9][10].
All You Need to Know About Rush Street Interactive (RSI) Rating Upgrade to Strong Buy
ZACKS· 2025-08-26 17:01
Core Viewpoint - Rush Street Interactive, Inc. (RSI) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Rush Street Interactive indicates an expected earnings of $0.35 per share for the fiscal year ending December 2025, showing no year-over-year change [9]. - Over the past three months, analysts have raised their earnings estimates for Rush Street Interactive by 14.8% [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is tracked through the Zacks Consensus Estimate [2]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade to Zacks Rank 1 places Rush Street Interactive in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [11]. Market Dynamics - Changes in earnings estimates are strongly correlated with stock price movements, particularly due to the actions of institutional investors who adjust their valuations based on these estimates [5][6]. - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 20% of stocks are positioned for superior returns based on earnings estimate revisions [10][11].
Northwest Natural (NWN) Upgraded to Buy: What Does It Mean for the Stock?
ZACKS· 2025-08-26 17:01
Core Viewpoint - Northwest Natural (NWN) 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][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade for Northwest Natural indicates an improvement in the company's underlying business, which is expected to drive the stock price higher as investors respond positively to this trend [5][10]. - For the fiscal year ending December 2025, Northwest Natural is projected to earn $2.92 per share, with a 2.8% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places Northwest Natural in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].
All You Need to Know About Consensus Cloud Solutions (CCSI) Rating Upgrade to Buy
ZACKS· 2025-08-26 17:01
Core Viewpoint - Consensus Cloud Solutions, Inc. (CCSI) has been upgraded to a Zacks Rank 2 (Buy), indicating an upward trend in earnings estimates which is a significant factor affecting stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade reflects a positive outlook on the earnings potential of Consensus Cloud Solutions, which could positively influence its stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant price movements based on their trading activities [5]. Performance of Zacks Rank System - The Zacks Rank 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 [8]. - The upgrade of Consensus Cloud Solutions 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 [11]. Earnings Estimate Revisions for Consensus Cloud Solutions - For the fiscal year ending December 2025, Consensus Cloud Solutions is expected to earn $5.52 per share, with no year-over-year change [9]. - Over the past three months, the Zacks Consensus Estimate for the company has increased by 3.7%, reflecting a positive trend in earnings estimates [9].
Brokers Suggest Investing in Chipotle (CMG): Read This Before Placing a Bet
ZACKS· 2025-08-26 14:30
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Chipotle Mexican Grill (CMG), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][5][10]. Brokerage Recommendations - Chipotle has an average brokerage recommendation (ABR) of 1.56, indicating a position between Strong Buy and Buy, based on recommendations from 33 brokerage firms [2]. - Out of the 33 recommendations, 22 are classified as Strong Buy (66.7%) and 3 as Buy (9.1%) [2]. Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations for investment decisions may not be advisable, as studies indicate they often fail to guide investors effectively towards stocks with high price appreciation potential [5][10]. - Brokerage analysts tend to exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [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 estimates, while ABR may not always be up-to-date [9][12]. Current Earnings Estimates for Chipotle - The Zacks Consensus Estimate for Chipotle's current year earnings remains unchanged at $1.21, suggesting analysts have steady views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Chipotle holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].
Wall Street Analysts Think Gray Media (GTN) Is a Good Investment: Is It?
ZACKS· 2025-08-26 14:30
Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable, particularly for Gray Media (GTN) [1][5][10]. Group 1: Analyst Recommendations - Gray Media has an average brokerage recommendation (ABR) of 1.67, indicating a position between Strong Buy and Buy, with 66.7% of the six recommendations being Strong Buy [2][5]. - Despite the positive ABR, relying solely on this information for investment decisions may not be prudent, as studies show brokerage recommendations often fail to guide investors effectively [5][10]. - Brokerage analysts tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Group 2: Zacks Rank vs. ABR - The Zacks Rank, which is based on earnings estimate revisions, is a more reliable indicator of a stock's near-term price performance compared to the ABR [8][11]. - The Zacks Rank is displayed in whole numbers (1 to 5) and is updated more frequently, reflecting timely changes in earnings estimates, unlike the ABR which may not be current [9][12]. - For Gray Media, the Zacks Consensus Estimate has declined by 54.2% over the past month, leading to a Zacks Rank of 4 (Sell), suggesting caution despite the favorable ABR [13][14].
Is Trending Stock Aptiv PLC (APTV) a Buy Now?
ZACKS· 2025-08-26 14:01
Core Viewpoint - Aptiv PLC (APTV) has gained attention as one of the most searched stocks, indicating potential interest from investors and analysts regarding its future performance [1]. Earnings Estimates - APTIV HLDS LTD is expected to report earnings of $1.74 per share for the current quarter, reflecting a year-over-year decline of -4.9%. The consensus estimate has decreased by -3.7% over the last 30 days [5]. - For the current fiscal year, the consensus earnings estimate is $7.44, indicating an increase of +18.9% from the previous year, with a recent upward revision of +3.1% [5]. - The next fiscal year's consensus earnings estimate stands at $7.98, suggesting a growth of +7.2% compared to the prior year, with a recent increase of +1.8% [6]. Revenue Growth - The consensus sales estimate for the current quarter is $5.03 billion, which represents a year-over-year growth of +3.7%. For the current and next fiscal years, the revenue estimates are $20.14 billion and $20.8 billion, indicating changes of +2.1% and +3.3%, respectively [11]. Recent Performance - In the last reported quarter, APTIV HLDS LTD achieved revenues of $5.21 billion, marking a year-over-year increase of +3.1%. The EPS for this period was $2.12, compared to $1.58 a year ago, with a revenue surprise of +3.51% and an EPS surprise of +18.44% [12]. - The company has consistently beaten consensus EPS estimates in the last four quarters and has exceeded revenue estimates three times during this period [13]. Valuation - APTIV HLDS LTD is graded A on the Zacks Value Style Score, indicating that it is trading at a discount compared to its peers, which suggests a favorable valuation relative to the market [17].
Earnings Estimates Moving Higher for Astronics (ATRO): Time to Buy?
ZACKS· 2025-08-25 17:21
Core Viewpoint - Astronics Corporation (ATRO) shows a significantly improving earnings outlook, making it a strong investment choice as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimates - Analysts' optimism is reflected in the rising earnings estimates, which historically correlate with stock price movements [2]. - The consensus earnings estimate for the current quarter is $0.40 per share, indicating a +14.3% change from the previous year, with a 17.65% increase in the Zacks Consensus Estimate over the last 30 days [5]. - For the full year, Astronics is expected to earn $1.60 per share, representing a +46.8% change from the prior year, with similar positive trends in estimate revisions [6]. Zacks Rank - Astronics currently holds a Zacks Rank 2 (Buy), indicating promising estimate revisions that can help investors make informed decisions [7]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500 [7]. Stock Performance - The stock has gained 5.4% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [8].