SmarFinancial (SMBK) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - SmarFinancial (SMBK) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings potential and likely favorable impact on its stock price [1][2]. Earnings Outlook - The Zacks Consensus Estimate for SmarFinancial's earnings per share (EPS) for the fiscal year ending December 2024 is projected at $2.01, reflecting a year-over-year change of -1% [5]. - Over the past three months, the Zacks Consensus Estimate for SmarFinancial has increased by 4.8%, indicating a trend of rising earnings estimates [5]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price movements as they buy or sell shares [3]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. - The upgrade of SmarFinancial to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [6].