Payoneer (PAYO) ZACKS·2024-12-25 18:01Core Viewpoint - The Zacks rating system provides a more balanced approach to stock ratings, maintaining an equal proportion of 'buy' and 'sell' ratings, with only the top 20% of stocks receiving favorable ratings, indicating strong earnings estimate revisions and potential for market-beating returns [1][2]. Company Summary - Payoneer Global Inc. (PAYO) has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting an upward trend in earnings estimates, which is a significant factor influencing stock prices [4][5]. - The recent rating upgrade for Payoneer Global suggests a positive outlook on its earnings, likely leading to an increase in its stock price [5][6]. - Over the past three months, analysts have raised their earnings estimates for Payoneer Global, with the Zacks Consensus Estimate increasing by 41.4% [8]. - The company is projected to earn $0.35 per share for the fiscal year ending December 2024, representing a year-over-year change of 45.8% [13]. - The upgrade positions Payoneer Global in the top 5% of Zacks-covered stocks based on estimate revisions, indicating potential for near-term stock price appreciation [18]. Industry Insights - The Zacks Rank stock-rating system, which categorizes stocks based on earnings estimate revisions, has shown a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [7]. - The correlation between earnings estimate revisions and stock price movements is well-established, making the Zacks rating system a valuable tool for investors [10][12]. - Institutional investors often rely on earnings estimates to determine a stock's fair value, influencing their buying and selling decisions, which in turn affects stock prices [11].