Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Over the past three months, the Zacks Consensus Estimate for the company has increased 7.4%. This company is expected to earn $2.11 per share for the fiscal year ending December 2022, which represents a year-over-year change of 7.7%.Īnalysts have been steadily raising their estimates for LIMESTONE BANCORP, INC. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >.Įarnings Estimate Revisions for LIMESTONE BANCORP, INC. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions. Harnessing the Power of Earnings Estimate RevisionsĮmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Investors should show their appreciation for this improving business trend by pushing the stock higher. imply an improvement in the company's underlying business.
FORBES REAL TIME WEALTH TRACKER UPGRADE
Their bulk investment action then leads to price movement for the stock.įundamentally speaking, rising earnings estimates and the consequent rating upgrade for LIMESTONE BANCORP, INC.
An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. Most Powerful Force Impacting Stock Prices is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. These are mostly driven by subjective factors that are hard to see and measure in real time.Īs such, the Zacks rating upgrade for LIMESTONE BANCORP, INC. The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts.
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. The Zacks rating relies solely on a company's changing earnings picture. This rating change essentially reflects an upward trend in earnings estimates - one of the most powerful forces impacting stock prices.
FORBES REAL TIME WEALTH TRACKER FREE
( LMST Quick Quote LMST - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy).
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