All You Need to Know About PRA Group (PRAA) Rating Upgrade to Strong Buy

Core Viewpoint - PRA Group (PRAA) 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][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [1][2]. - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for PRA Group indicate an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Zacks Rank System - The Zacks Rank 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 [7][9]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revision features [9][10]. Specific Earnings Estimates for PRA Group - For the fiscal year ending December 2025, PRA Group is expected to earn $2.10 per share, reflecting a 17.3% change from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for PRA Group has increased by 4.6% [8].