Core Viewpoint - Sensata (ST) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence 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 stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Sensata, the recent increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices as investor sentiment shifts positively [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - Sensata's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9][10]. Earnings Estimate Revisions for Sensata - For the fiscal year ending December 2025, Sensata is expected to earn $3.37 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 2.3% over the past three months, reflecting analysts' growing optimism [8].

Core Viewpoint - Sensata (ST) is anticipated to report a year-over-year decline in earnings and revenues for the quarter ended June 2025, which could significantly influence its stock price depending on the actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for July 29, and if the results exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The Zacks Consensus Estimate predicts quarterly earnings of $0.84 per share, reflecting a year-over-year decrease of 9.7%, with revenues expected to be $933.26 million, down 9.9% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 1.55% higher, indicating a collective reassessment by analysts [4]. - The Most Accurate Estimate for Sensata is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.27%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - Sensata currently holds a Zacks Rank of 2, which, along with the positive Earnings ESP, suggests a high likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Sensata exceeded the expected earnings of $0.72 per share by delivering $0.78, resulting in a surprise of +8.33% [13]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [14]. Conclusion - While Sensata is positioned as a compelling earnings-beat candidate, other factors should also be considered when evaluating the stock ahead of its earnings release [17].