Core Viewpoint - Compass, Inc. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2] Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5] - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3] Business Improvement Indicators - The upgrade in earnings estimates for Compass suggests an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [4][9] - For the fiscal year ending December 2025, Compass is expected to earn $0.09 per share, reflecting a 129% increase from the previous year [7] 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 [6][8] - The upgrade of Compass to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9]
Compass (COMP) Upgraded to Buy: Here's What You Should Know