Genpact (G) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often find it h ...

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Genpact (G) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly desirable [4] - Genpact has a historical EPS growth rate of 11.7%, with projected EPS growth of 9.8% this year, surpassing the industry average of 9.2% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks [6] - Genpact's S/TA ratio is 0.97, indicating it generates $0.97 in sales for every dollar in assets, which is higher than the industry average of 0.93 [6] Group 4: Sales Growth - Sales growth is another critical factor, with Genpact expected to achieve a sales growth of 6% this year, compared to the industry average of 5.3% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions are significant, with positive revisions correlating with stock price movements [8] - Genpact's current-year earnings estimates have increased by 2.7% over the past month, indicating a positive trend [8] Group 6: Overall Assessment - Genpact has earned a Growth Score of B and a Zacks Rank 2 due to its favorable metrics and positive earnings estimate revisions, making it a solid choice for growth investors [9][10]

Core Viewpoint - Genpact (G) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive 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 earnings estimates, which are strongly correlated 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]. Business Outlook for Genpact - The upgrade reflects an improvement in Genpact's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - For the fiscal year ending December 2025, Genpact is expected to earn $3.60 per share, with a 2.8% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7]. - Genpact's upgrade 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 [10].