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OPENLANE (KAR) Upgraded to Buy: Here's Why
ZACKSยท 2025-07-09 17:00
Core Viewpoint - OPENLANE (KAR) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. OPENLANE's Earnings Outlook - For the fiscal year ending December 2025, OPENLANE is expected to earn $0.98 per share, which remains unchanged from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for OPENLANE has increased by 0.3%, reflecting a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - OPENLANE'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].