Core Viewpoint - Webtoon Entertainment (WBTN) 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][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Webtoon indicates an expected earnings of $0.24 per share for the fiscal year ending December 2025, showing no year-over-year change [9]. - Over the past three months, the Zacks Consensus Estimate for Webtoon has increased by 56.7%, reflecting a positive trend in earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is tracked through EPS estimates from sell-side analysts [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 of Webtoon to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11]. Market Influence - Changes in earnings estimates are strongly correlated with stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [5]. - Rising earnings estimates and the subsequent rating upgrade for Webtoon suggest an improvement in the company's underlying business, which could lead to increased stock prices [6].