Clear Secure (YOU) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.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.Individ ...

Core Viewpoint - Clear Secure (YOU) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding Clear Secure's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, the earnings estimate is $0.27 per share, a decrease of 10.0% from the previous year, but the Zacks Consensus Estimate has increased by 5.94% over the last 30 days with no negative revisions [5]. - For the full year, the earnings estimate stands at $1.07 per share, representing a 40.6% decline from the previous year, yet there has been a positive trend in estimate revisions with three estimates moving up and no negative revisions [6]. Zacks Rank and Performance - Clear Secure has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating strong potential for outperformance [7]. - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 2008, suggesting a strong track record of success [3]. - The stock has appreciated by 11.7% over the past four weeks, indicating investor confidence in its earnings growth prospects [8].

Core Viewpoint - Clear Secure (YOU) is expected to report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to be released on May 8, 2025, with expected earnings of $0.30 per share, reflecting a +7.1% change year-over-year, and revenues projected at $208.17 million, up 16.3% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 7.41% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Clear Secure is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +7.86% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Clear Secure currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Clear Secure exceeded the expected earnings of $0.28 per share by delivering $0.90, resulting in a surprise of +221.43% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - Clear Secure is positioned as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance beyond just earnings results [16].