Imperial Oil(IMO) ZACKS·2025-03-05 18:01Core Viewpoint - Imperial Oil (IMO) 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 Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, indicating a company's earnings outlook [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4][6]. Recent Developments for Imperial Oil - Analysts have raised their earnings estimates for Imperial Oil, with the Zacks Consensus Estimate increasing by 15.5% over the past three months [8]. - For the fiscal year ending December 2025, Imperial Oil is expected to earn $5.82 per share, reflecting a year-over-year change of -11.7% [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Imperial Oil to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for near-term price increases due to favorable earnings estimate revisions [10].