Genius Sports (GENI) ZACKS·2025-01-20 18:01Core Viewpoint - Genius Sports Limited (GENI) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to institutional investors adjusting their valuations, resulting in stock price movements due to large transactions [4]. Recent Performance and Outlook - For the fiscal year ending December 2024, Genius Sports Limited is projected to earn -$0.10 per share, reflecting a 69.7% change from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Genius Sports Limited has increased by 113.3%, indicating a positive trend in earnings expectations [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 to Zacks Rank 2 places Genius Sports Limited in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].