Core Viewpoint - GitLab Inc. (GTLB) 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][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, with the Zacks Consensus Estimate reflecting EPS estimates from sell-side analysts [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade for GitLab suggest an improvement in the company's underlying business, which could lead to increased stock prices as investors respond positively [5][10]. - Over the past three months, the Zacks Consensus Estimate for GitLab has increased by 45.2%, indicating a positive trend in earnings expectations [8]. Zacks Rank System Overview - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].