Shinhan Financial (SHG) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Shinhan Financial (SHG) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on changes in earnings estimates, which are often more reliable than subjective ratings from Wall Street analysts [2][4]. - The upgrade reflects a positive outlook on Shinhan Financial's earnings, likely leading to increased buying pressure and a rise in stock price [3][5]. Earnings Estimate Revisions - Empirical research indicates a strong correlation between earnings estimate revisions and near-term stock movements, making it beneficial for investors to track these revisions [6]. - Shinhan Financial is projected to earn $6.32 per share for the fiscal year ending December 2024, representing a year-over-year increase of 2.6%. Over the past three months, the Zacks Consensus Estimate for the company has risen by 1.6% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Shinhan Financial to a 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].