Core Viewpoint - Chemed (CHE) 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 near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Chemed's Earnings Outlook - Chemed is expected to earn $22.16 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 1.6% over the past three months [8]. - The upgrade reflects an improvement in Chemed's underlying business, which is likely to drive the stock price higher as investors respond positively to this trend [5][10]. 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]. - Chemed'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 [9][10].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Chemed despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Chemed is expected to report quarterly earnings of $4.76 per share, reflecting a 13% decrease year-over-year, while revenues are projected to be $619.83 million, a 4% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 9.39% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [12]. Historical Performance - Chemed has beaten consensus EPS estimates in two out of the last four quarters, with a recent surprise of +0.54% when it reported earnings of $5.63 per share against an expectation of $5.6 [13][14]. Zacks Rank - The stock currently holds a Zacks Rank of 4, indicating a less favorable outlook for an earnings beat [12]. Conclusion - Chemed does not appear to be a strong candidate for an earnings beat, and investors should consider other factors before making investment decisions [17].