Limbach (LMB) Upgraded to Strong Buy: Here's Why

Core Viewpoint - Limbach (LMB) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The change in a company's future earnings potential, as indicated by earnings estimate revisions, is strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to buying or selling actions that affect stock prices [3]. Limbach's Earnings Outlook - Limbach is expected to earn $2.54 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 44.3% [7]. - Over the past three months, the Zacks Consensus Estimate for Limbach has risen by 11.6%, indicating a positive trend in earnings estimates [7]. 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 [6]. - The upgrade of Limbach to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [9].