Group 1 - McKesson has an average brokerage recommendation (ABR) of 1.47, indicating a consensus between Strong Buy and Buy from 17 brokerage firms, with 76.5% of recommendations being Strong Buy [2][5][14] - The Zacks Consensus Estimate for McKesson's earnings has increased by 0.2% over the past month to $37.25, reflecting analysts' growing optimism about the company's earnings prospects [13] - McKesson currently holds a Zacks Rank 2 (Buy), suggesting a positive outlook for the stock based on earnings estimate revisions [14] Group 2 - Brokerage analysts tend to exhibit a strong positive bias in their recommendations, with five "Strong Buy" ratings for every "Strong Sell," which may mislead investors [6][10] - The ABR is based solely on brokerage recommendations and may not be timely, while the Zacks Rank is a quantitative model that quickly reflects earnings estimate revisions, making it a more reliable indicator of near-term stock performance [9][12] - The Zacks Rank maintains a balance among the five ranks it assigns, ensuring a proportional application across all stocks for which analysts provide earnings estimates [11]

Core Viewpoint - Perimeter Solutions, SA (PRM) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, making it a valuable tool for investors [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Investor Sentiment - The upgrade for Perimeter Solutions, SA reflects an improvement in its underlying business, which is expected to drive stock appreciation as investors recognize this positive trend [5]. - Over the past three months, the Zacks Consensus Estimate for Perimeter Solutions has increased by 67.6%, indicating a strong upward revision in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Perimeter Solutions' upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on Visa (V), and emphasizes the importance of using these recommendations in conjunction with other research tools like the Zacks Rank to make informed investment decisions [1][5][10]. Group 1: Brokerage Recommendations - Visa has an average brokerage recommendation (ABR) of 1.43, indicating a consensus between Strong Buy and Buy, with 27 out of 37 recommendations classified as Strong Buy, accounting for 73% of total recommendations [2][5]. - The ABR suggests a favorable outlook for Visa, but relying solely on this metric may not be advisable due to the tendency of brokerage analysts to exhibit a positive bias in their ratings [5][10]. Group 2: Zacks Rank - The Zacks Rank, which is a proprietary stock rating tool, classifies stocks into five groups based on earnings estimate revisions, and is considered a reliable indicator of near-term price performance [8][11]. - Visa currently holds a Zacks Rank of 2 (Buy), reflecting a 0% increase in the Zacks Consensus Estimate for the current year to $11.35, indicating analysts' optimism regarding the company's earnings prospects [14][15]. - The Zacks Rank is updated more frequently than the ABR, making it a timely tool for predicting future stock prices [13].

Core Viewpoint - SelectQuote (SLQT) 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 emphasizes the importance of changing earnings estimates, which are strongly 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]. SelectQuote's Earnings Outlook - The recent upgrade for SelectQuote reflects an improvement in its underlying business, driven by rising earnings estimates, which is expected to create buying pressure and increase its stock price [5][10]. - Over the past three months, the Zacks Consensus Estimate for SelectQuote has increased by 33.3%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, positioning SelectQuote favorably for potential market-beating returns [9][10].

Core Viewpoint - Summit Therapeutics PLC (SMMT) has seen a 2.8% increase in share price over the past four weeks, closing at $21.2, with a mean price target of $34.56 indicating a potential upside of 63% according to Wall Street analysts [1]. Price Targets and Analyst Estimates - The mean estimate consists of nine short-term price targets with a standard deviation of $10, where the lowest estimate is $12.00 (43.4% decline) and the highest is $44.00 (107.6% increase) [2]. - Analysts' price targets can often mislead investors, as empirical research shows that they rarely indicate the actual price direction of a stock [7]. - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9]. Earnings Estimates and Analyst Sentiment - Analysts have shown strong agreement in revising SMMT's earnings estimates higher, which correlates with potential stock price increases [11]. - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 2.1%, with one estimate moving higher and no negative revisions [12]. - SMMT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential upside [13]. Conclusion on Price Movement - While the consensus price target may not be a reliable indicator of the extent of SMMT's potential gains, the implied direction of price movement appears to be a useful guide [14].

Core Viewpoint - Verona Pharma PLC (VRNA) shows potential for further upside, with a mean price target of $114 indicating a 26% upside from its last trading price of $90.48 [1] Price Targets and Analyst Consensus - The average price target consists of 10 estimates ranging from $90.00 to $160.00, with a standard deviation of $23.98, indicating variability among analysts [2] - The lowest estimate suggests a slight decline of 0.5%, while the highest estimate indicates a significant upside of 76.8% [2] - A low standard deviation suggests a strong agreement among analysts regarding the stock's price movement direction [9] Earnings Estimates and Analyst Optimism - Analysts have shown increasing optimism about VRNA's earnings prospects, with a positive trend in earnings estimate revisions [11] - Over the past 30 days, three estimates have been revised higher, leading to a 36.8% increase in the Zacks Consensus Estimate for the current year [12] - VRNA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors [13] Caution on Price Targets - While price targets are commonly referenced, they can mislead investors, as empirical research indicates they rarely predict actual stock price movements [7][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

Group 1 - Manchester United (MANU) shares have increased by 19.7% in the past four weeks, closing at $16.99, with a mean price target of $21.97 indicating a potential upside of 29.3% [1][2] - The average price targets range from a low of $16.90 to a high of $26.00, with a standard deviation of $4.64, suggesting variability in analyst estimates [2][9] - Analysts have shown a strong consensus in revising earnings estimates higher, with the Zacks Consensus Estimate for the current year increasing by 79.9% over the past month [11][12] Group 2 - MANU holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] - The correlation between earnings estimate revisions and near-term stock price movements supports the expectation of an upside in MANU [11][14] - While price targets may not be reliable indicators of actual stock price movements, they can provide a directional guide for potential price changes [10][14]

Core Viewpoint - Cracker Barrel Old Country Store (CBRL) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][10]. Earnings Estimate Revisions - The current quarter's earnings estimate is projected at $0.78 per share, reflecting a year-over-year decline of 20.41%. However, the Zacks Consensus Estimate has increased by 12.68% over the last 30 days, with three estimates moving higher and no negative revisions [6]. - For the full year, the earnings estimate stands at $3.20 per share, showing a year-over-year decrease of 9.09%. The consensus estimate has risen by 18.33% in the past month, with four estimates increasing and no negative revisions [7][8]. Analyst Optimism - There is a growing trend in estimate revisions driven by increasing analyst optimism regarding Cracker Barrel's earnings prospects, which is expected to positively influence the stock price [2]. - The Zacks Rank system, which categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell), indicates that Cracker Barrel currently holds a Zacks Rank 1 (Strong Buy), suggesting strong potential for outperformance [3][9]. Stock Performance - Cracker Barrel's stock has gained 7.7% over the past four weeks, reflecting investor confidence based on solid estimate revisions and favorable earnings growth prospects [10].

Core Viewpoint - Sage Therapeutics, Inc. (SAGE) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on upward revisions in earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [4][6]. - Institutional investors utilize 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 recent upgrade for Sage Therapeutics reflects an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - Analysts have raised their earnings estimates for Sage Therapeutics, with the Zacks Consensus Estimate increasing by 1.4% over the past three months [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimates, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - Sage Therapeutics' upgrade to Zacks Rank 2 places it within this top 20%, suggesting potential for market-beating returns in the near term [10].

Core Viewpoint - Freshworks Inc. has been upgraded 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 Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5] - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3] Freshworks' Earnings Outlook - For the fiscal year ending December 2025, Freshworks is expected to earn $0.57 per share, unchanged from the previous year [7] - Over the past three months, the Zacks Consensus Estimate for Freshworks has increased by 20.5%, indicating a positive trend in earnings estimates [7] 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 [6] - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [8][9] Implications for Investors - The upgrade to Zacks Rank 1 positions Freshworks among the top 5% of stocks, suggesting potential for market-beating returns in the near term [9]